Designer Brands (NYSE:DBI) - Share price, News & Analysis

DBI fundamental analysis
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

Trading at 39.4% below our estimate of its fair value

Earnings are forecast to grow 2.46% per year

Became profitable this year

Risk Analysis

No risks detected for DBI from our risk checks.

Designer Brands Competitors

Burlington Stores

NYSE:BURL

US$11.2b

Foot Locker

NYSE:FL

US$3.1b

American Eagle Outfitters

NYSE:AEO

US$2.4b

Boot Barn Holdings

NYSE:BOOT

US$2.3b

Price History & Performance

Summary of all time highs, changes and price drops for Designer Brands
Historical stock prices
Current Share Price	US$15.64
52 Week High	US$19.39
52 Week Low	US$11.24
Beta	2.17
1 Month Change	7.49%
3 Month Change	16.28%
1 Year Change	-15.96%
3 Year Change	-17.94%
5 Year Change	-8.59%
Change since IPO	-39.06%

Recent News & Updates

May 05

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.

Apr 20

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	12.3%	-0.6%	1.0%
1Y	-16.0%	-27.4%	-15.1%

Return vs Industry: DBI exceeded the US Specialty Retail industry which returned -27.4% over the past year.

Return vs Market: DBI matched the US Market which returned -15.1% over the past year.

Price Volatility

Is DBI's price volatile compared to industry and market?
DBI volatility
DBI Average Weekly Movement	8.8%
Specialty Retail Industry Average Movement	8.7%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: DBI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: DBI's weekly volatility (9%) 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

How do Designer Brands's earnings and revenue compare to its market cap?
DBI fundamental statistics
Market Cap	US$1.13b
Earnings (TTM)	US$154.48m
Revenue (TTM)	US$3.20b

7.3x

P/E Ratio

0.4x

P/S Ratio

Is DBI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
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

Jun 02, 2022

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 comparison

Dividends

1.3%

Current Dividend Yield

0%

Payout Ratio

Does DBI pay a reliable dividends?

See DBI dividend history and benchmarks

When do you need to buy DBI by to receive an upcoming dividend?
Designer Brands dividend dates
Ex Dividend Date	Jun 21 2022
Dividend Pay Date	Jul 06 2022
Days until Ex dividend	25 days
Days until Dividend pay date	40 days

Does DBI pay a reliable dividends?

See DBI dividend history and benchmarks

Valuation

Is Designer Brands undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

39.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: DBI ($15.64) is trading below our estimate of fair value ($25.81)

Significantly Below Fair Value: DBI is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: DBI is poor value based on its Price-To-Earnings Ratio (7.3x) compared to the US Specialty Retail industry average (6.6x).

PE vs Market: DBI is good value based on its Price-To-Earnings Ratio (7.3x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: DBI is poor value based on its PEG Ratio (3x)

Price to Book Ratio

PB vs Industry: DBI is overvalued based on its Price-To-Book Ratio (2.7x) compared to the US Specialty Retail industry average (1.8x).

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

1/6

Future Growth Score 1/6

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

2.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DBI's forecast earnings growth (2.5% per year) is above the savings rate (1.9%).

Earnings vs Market: DBI's earnings (2.5% per year) are forecast to grow slower than the US market (13% 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

3/6

Past 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 (66.3%).

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

5/6

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: 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

1/6

Dividend Score 1/6

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

1.28%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: DBI's dividend (1.28%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: DBI's dividend (1.28%) is low compared to the top 25% of dividend payers in the US market (4.01%).

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.

Discover strong dividend paying companies

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 ($USD9.74M) is above average for companies of similar size in the US market ($USD3.84M).

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 ( 14.2 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/26 00:00
End of Day Share Price	2022/05/26 00:00
Earnings	2022/01/29
Annual Earnings	2022/01/29