DSW : NYSE : Services
$16.73 | %
Today's Range: 16.46 - 16.82
Avg. Daily Volume: 2593300.0
05/26/17 - 4:02 PM ET

Financial Analysis


DSW INC's gross profit margin for the first quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. DSW INC has weak liquidity. Currently, the Quick Ratio is 0.77 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.25% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)691.1681.27
EBITDA ($mil)0.072.23
EBIT ($mil)42.9852.48
Net Income ($mil)22.9730.01


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)253.87165.17
Total Assets ($mil)1471.461456.99
Total Debt ($mil)0.00.0
Equity ($mil)945.29933.57


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin28.2532.92
EBITDA Margin0.010.6
Operating Margin6.227.7
Sales Turnover1.851.82
Return on Assets7.988.14
Return on Equity12.4212.71
Debt Q1 FY17 Q1 FY16
Current Ratio2.522.38
Debt/Capital0.00.0
Interest Expense0.00.05
Interest Coverage0.01070.98


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)80.1882.02
Div / share0.20.2
EPS0.280.36
Book value / share11.7911.38
Institutional Own % n/a n/a
Avg Daily Volume2538424.01412518.0

Valuation


HOLD. DSW INC's P/E ratio indicates a significant discount compared to an average of 23.87 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 25.37. For additional comparison, its price-to-book ratio of 1.37 indicates a significant discount versus the S&P 500 average of 3.04 and a significant discount versus the industry average of 21.10. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, DSW INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DSW 11.34 Peers 23.87   DSW NA Peers 14.46

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

DSW is trading at a significant discount to its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DSW 10.66 Peers 19.30   DSW NM Peers 1.92

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

DSW is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

DSW's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DSW 1.37 Peers 21.10   DSW 5.14 Peers 35.04

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DSW is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, DSW is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DSW 0.48 Peers 1.51   DSW 2.84 Peers 6.91

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

DSW is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

DSW significantly trails its peers on the basis of sales growth

 

 

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