| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 1/6 |
| Past Performance | 3/6 |
| Financial Health | 5/6 |
| Dividends | 1/6 |
DBI Stock Overview
Designer Brands Inc., together with its subsidiaries, designs, manufactures, and retails footwear and accessories for women, men, and kids primarily in North America.
Rewards
Risk Analysis
No risks detected for DBI from our risk checks.
Designer Brands Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$14.06 |
| 52 Week High | US$20.48 |
| 52 Week Low | US$11.24 |
| Beta | 2.17 |
| 1 Month Change | -5.57% |
| 3 Month Change | 10.45% |
| 1 Year Change | -28.77% |
| 3 Year Change | -30.64% |
| 5 Year Change | -19.56% |
| Change since IPO | -45.22% |
Recent News & Updates
Designer Brands: Still A 'Show Me' Story
Designer Brands outlined some promising new mid-term financial targets, but secular headwinds remain a concern. The focus on owned brands and the planned shifts in supply chain/sourcing are positives but could result in margin pressure down the line. While the stock trades at undemanding valuations, I remain in 'wait-and-see' mode pending evidence of sustained growth/margin stability.
Is Designer Brands (NYSE:DBI) Using Too Much Debt?
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Shareholder Returns
| DBI | US Specialty Retail | US Market | |
|---|---|---|---|
| 7D | 2.7% | -3.3% | -2.5% |
| 1Y | -28.8% | -24.8% | -10.4% |
Return vs Industry: DBI underperformed the US Specialty Retail industry which returned -24.8% over the past year.
Return vs Market: DBI underperformed the US Market which returned -10.4% over the past year.
Price Volatility
| DBI volatility | |
|---|---|
| DBI Average Weekly Movement | 8.3% |
| Specialty Retail Industry Average Movement | 8.3% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.7% |
| 10% least volatile stocks in US Market | 2.8% |
Stable Share Price: DBI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: DBI's weekly volatility (8%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1991 | 13,500 | Roger Rawlins | https://www.designerbrands.com |
Designer Brands Inc., together with its subsidiaries, designs, manufactures, and retails footwear and accessories for women, men, and kids primarily in North America. The company operates through three segments: U.S. Retail, Canada Retail, and Brand Portfolio.
Designer Brands Fundamentals Summary
| DBI fundamental statistics | |
|---|---|
| Market Cap | US$1.02b |
| Earnings (TTM) | US$154.48m |
| Revenue (TTM) | US$3.20b |
6.6x
P/E Ratio0.3x
P/S RatioIs DBI overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| DBI income statement (TTM) | |
|---|---|
| Revenue | US$3.20b |
| Cost of Revenue | US$2.13b |
| Gross Profit | US$1.07b |
| Other Expenses | US$914.16m |
| Earnings | US$154.48m |
Last Reported Earnings
Jan 29, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.14 |
| Gross Margin | 33.43% |
| Net Profit Margin | 4.83% |
| Debt/Equity Ratio | 54.7% |
How did DBI perform over the long term?
See historical performance and comparisonDividends
1.4%
Current Dividend Yield0%
Payout RatioValuation
Is Designer Brands undervalued compared to its fair value and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
44.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DBI ($14.06) is trading below our estimate of fair value ($25.15)
Significantly Below Fair Value: DBI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DBI's PE Ratio (6.6x) is in line with the US Specialty Retail industry average.
PE vs Market: DBI is good value based on its PE Ratio (6.6x) compared to the US market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: DBI is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: DBI is overvalued based on its PB Ratio (2.5x) compared to the US Specialty Retail industry average (1.9x).
Future Growth
How is Designer Brands forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Future Growth Score
1/6Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
2.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DBI's forecast earnings growth (2.4% per year) is above the savings rate (1.9%).
Earnings vs Market: DBI's earnings (2.4% per year) are forecast to grow slower than the US market (12.6% per year).
High Growth Earnings: DBI's earnings are forecast to grow, but not significantly.
Revenue vs Market: DBI's revenue (3.6% per year) is forecast to grow slower than the US market (8% per year).
High Growth Revenue: DBI's revenue (3.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DBI's Return on Equity is forecast to be low in 3 years time (19.2%).
Past Performance
How has Designer Brands performed over the past 5 years?
Past Performance Score
3/6Past Performance Score 3/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-48.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DBI has high quality earnings.
Growing Profit Margin: DBI became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: DBI's earnings have declined by 48.4% per year over the past 5 years.
Accelerating Growth: DBI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: DBI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (82.9%).
Return on Equity
High ROE: DBI's Return on Equity (37.5%) is considered high.
Financial Health
How is Designer Brands's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: DBI's short term assets ($914.2M) exceed its short term liabilities ($758.9M).
Long Term Liabilities: DBI's short term assets ($914.2M) exceed its long term liabilities ($843.3M).
Debt to Equity History and Analysis
Debt Level: DBI's net debt to equity ratio (37.1%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if DBI's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: DBI's debt is well covered by operating cash flow (76%).
Interest Coverage: DBI's interest payments on its debt are well covered by EBIT (6.1x coverage).
Balance Sheet
Dividend
What is Designer Brands's current dividend yield, its reliability and sustainability?
Dividend Score
1/6Dividend Score 1/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
1.42%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DBI's dividend (1.42%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.54%).
High Dividend: DBI's dividend (1.42%) is low compared to the top 25% of dividend payers in the US market (4.05%).
Stability and Growth of Payments
Stable Dividend: DBI's dividend payments have been volatile in the past 10 years.
Growing Dividend: DBI's dividend payments have fallen over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: Unable to calculate sustainability of dividends as DBI has not reported any payouts.
Cash Payout to Shareholders
Cash Flow Coverage: With its low cash payout ratio (10.4%), DBI's dividend payments are thoroughly covered by cash flows.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.9yrs
Average management tenure
CEO
Roger Rawlins (54 yo)
6.33yrs
Tenure
US$9,735,430
Compensation
Mr. Roger L. Rawlins is Interim President of DSW Shoe Warehouse, Inc. since February 18, 2020. He serves as Chief Executive Officer of Designer Brands since January 2016. Mr. Rawlins serves as Director at...
CEO Compensation Analysis
Compensation vs Market: Roger's total compensation ($USD9.74M) is above average for companies of similar size in the US market ($USD3.88M).
Compensation vs Earnings: Roger's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: DBI's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.
Board Members
Experienced Board: DBI's board of directors are seasoned and experienced ( 11.8 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Designer Brands Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Designer Brands Inc.
- Ticker: DBI
- Exchange: NYSE
- Founded: 1991
- Industry: Apparel Retail
- Sector: Retail
- Implied Market Cap: US$1.016b
- Shares outstanding: 72.28m
- Website: https://www.designerbrands.com
Number of Employees
Location
- Designer Brands Inc.
- 810 DSW Drive
- Columbus
- Ohio
- 43219
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/15 00:00 |
| End of Day Share Price | 2022/05/13 00:00 |
| Earnings | 2022/01/29 |
| Annual Earnings | 2022/01/29 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.