Duluth Holdings (NasdaqGS:DLTH) - Share price, News & Analysis

Q: What is the Fair Price of DLTH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

DLTH ($9.67) is trading above our estimate of [[fair value]] ($0.66)

DLTH fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	2/6
Financial Health	5/6
Dividends	0/6

DLTH Stock Overview

Duluth Holdings Inc. sells casual wear, workwear, and accessories for men and women under the Duluth Trading brand in the United States.

Rewards

Price-To-Earnings ratio (11.6x) is below the US market (14.7x)

Earnings are forecast to grow 21.92% per year

Risk Analysis

No risks detected for DLTH from our risk checks.

Duluth Holdings Competitors

Lands' End

NasdaqCM:LE

US$383.6m

PetMed Express

NasdaqGS:PETS

US$397.1m

RumbleON

NasdaqCM:RMBL

US$247.3m

Liquidity Services

NasdaqGS:LQDT

US$502.3m

Price History & Performance

Summary of all time highs, changes and price drops for Duluth Holdings
Historical stock prices
Current Share Price	US$9.67
52 Week High	US$19.74
52 Week Low	US$9.09
Beta	0.79
1 Month Change	-21.57%
3 Month Change	-20.61%
1 Year Change	-50.18%
3 Year Change	-30.63%
5 Year Change	-46.22%
Change since IPO	-29.16%

Recent News & Updates

Jul 01

Duluth Holdings (NASDAQ:DLTH) Seems To Use Debt Quite Sensibly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Jun 28

Duluth Holdings: Inexpensive Consumer Discretionary Winner

DLTH has seen significant improvement in margins which bodes well for future earnings expansion. The stock trades at a very compelling valuation compared to history at just 12.4 times trailing earnings. The company is continuing to make investments in brand and fulfillment, which will pay off in later 2022 and 2023.

Jun 16

Duluth Holdings: Strong Cash Position, But Macroeconomic Pressures Still Lie Ahead

Duluth Holdings could see a potential drop in demand as well as supply chain concerns in upcoming quarters due to inflation. However, the company's overall cash position seems to be strong. While Duluth Holdings seems to be in a stable financial position to weather the current macroeconomic conditions, the stock could still see short-term downside.

Shareholder Returns

	DLTH	US Online Retail	US Market
7D	-10.5%	-4.4%	-2.5%
1Y	-50.2%	-42.7%	-21.2%

Return vs Industry: DLTH underperformed the US Online Retail industry which returned -42.7% over the past year.

Return vs Market: DLTH underperformed the US Market which returned -21.2% over the past year.

Price Volatility

Is DLTH's price volatile compared to industry and market?
DLTH volatility
DLTH Average Weekly Movement	7.2%
Online Retail Industry Average Movement	13.3%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.3%

Stable Share Price: DLTH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: DLTH's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1989	2,059	Sam Sato	https://www.duluthtrading.com

Duluth Holdings Inc. sells casual wear, workwear, and accessories for men and women under the Duluth Trading brand in the United States. It provides shirts, pants, underwear, outerwear, footwear, accessories, and hard goods. The company offers its products under various trademarks, trade names, and service marks, including Alaskan Hardgear, Armachillo, Ballroom, Cab Commander, Crouch Gusset, Dry on the Fly, Duluth Trading Co, Duluthflex, Fire Hose, Longtail T, No Polo Shirt, No Yank, Wild Boar Mocs, and Buck Naked.

Duluth Holdings Fundamentals Summary

How do Duluth Holdings's earnings and revenue compare to its market cap?
DLTH fundamental statistics
Market Cap	US$322.59m
Earnings (TTM)	US$27.86m
Revenue (TTM)	US$688.07m

11.6x

P/E Ratio

0.5x

P/S Ratio

Is DLTH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DLTH income statement (TTM)
Revenue	US$688.07m
Cost of Revenue	US$310.23m
Gross Profit	US$377.84m
Other Expenses	US$349.98m
Earnings	US$27.86m

Last Reported Earnings

May 01, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.84
Gross Margin	54.91%
Net Profit Margin	4.05%
Debt/Equity Ratio	12.3%

How did DLTH perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is DLTH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DLTH?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for DLTH. This is calculated by dividing DLTH's market cap by their current preferred multiple.
What is DLTH's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$322.59m

DLTH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.7x
Enterprise Value/EBITDA	6.7x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

How does DLTH's PE Ratio compare to its peers?

DLTH PE Ratio vs Peers

The above table shows the PE ratio for DLTH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	26.3x
LE Lands' End	13.5x	32.2%	US$383.6m
PETS PetMed Express	18.8x	12.8%	US$397.1m
RMBL RumbleON	63.9x	32.7%	US$247.3m
LQDT Liquidity Services	8.9x	n/a	US$502.3m
DLTH Duluth Holdings	11.6x	21.9%	US$322.6m

Forward PE

Price-To-Earnings vs Peers: DLTH is good value based on its Price-To-Earnings Ratio (11.6x) compared to the peer average (26.3x).

Price to Earnings Ratio vs Industry

How does DLTH's PE Ratio compare vs other companies in the US Online Retail Industry?

Price-To-Earnings vs Industry: DLTH is good value based on its Price-To-Earnings Ratio (11.6x) compared to the US Online Retail industry average (16x)

Price to Earnings Ratio vs Fair Ratio

What is DLTH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DLTH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.6x
Fair PE Ratio	11.8x

Price-To-Earnings vs Fair Ratio: DLTH is good value based on its Price-To-Earnings Ratio (11.6x) compared to the estimated Fair Price-To-Earnings Ratio (11.8x).

Share Price vs Fair Value

What is the Fair Price of DLTH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DLTH ($9.67) is trading above our estimate of fair value ($0.66)

Significantly Below Fair Value: DLTH is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: DLTH is good value based on its PEG Ratio (0.5x)

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Future Growth

How is Duluth Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

21.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLTH's forecast earnings growth (21.9% per year) is above the savings rate (1.9%).

Earnings vs Market: DLTH's earnings (21.9% per year) are forecast to grow faster than the US market (13.6% per year).

High Growth Earnings: DLTH's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DLTH's revenue (9% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: DLTH's revenue (9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if DLTH's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Duluth Holdings performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

7.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DLTH has high quality earnings.

Growing Profit Margin: DLTH's current net profit margins (4%) are lower than last year (4.4%).

Past Earnings Growth Analysis

Earnings Trend: DLTH's earnings have grown by 7.9% per year over the past 5 years.

Accelerating Growth: DLTH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DLTH had negative earnings growth (-4.2%) over the past year, making it difficult to compare to the Online Retail industry average (-18.3%).

Return on Equity

High ROE: DLTH's Return on Equity (12.5%) is considered low.

Discover strong past performing companies

Financial Health

How is Duluth Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: DLTH's short term assets ($214.1M) exceed its short term liabilities ($108.2M).

Long Term Liabilities: DLTH's short term assets ($214.1M) exceed its long term liabilities ($173.3M).

Debt to Equity History and Analysis

Debt Level: DLTH has more cash than its total debt.

Reducing Debt: DLTH's debt to equity ratio has increased from 0.9% to 12.3% over the past 5 years.

Debt Coverage: DLTH's debt is well covered by operating cash flow (176.2%).

Interest Coverage: DLTH's interest payments on its debt are well covered by EBIT (9.6x coverage).

Balance Sheet

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Dividend

What is Duluth Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate DLTH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DLTH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DLTH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DLTH's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as DLTH has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure

CEO

Sam Sato (58 yo)

1.17yrs

Tenure

US$3,811,911

Compensation

Mr. Samuel M. Sato, also known as Sam, serves as President and Chief Executive Officer at Duluth Holdings Inc. since May 3, 2021 and has been its Director since May 27, 2021. Mr. Sato had been Chief Execut...

CEO Compensation Analysis

Compensation vs Market: Sam's total compensation ($USD3.81M) is above average for companies of similar size in the US market ($USD2.92M).

Compensation vs Earnings: Insufficient data to compare Sam's compensation with company performance.

Leadership Team

Experienced Management: DLTH's management team is considered experienced (2.8 years average tenure).

Board Members

Experienced Board: DLTH's board of directors are considered experienced (6.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/05/01
Annual Earnings	2022/01/30