Dillard's, Inc. Fundamental Analysis (NYSE: DDS)
Dillard's, Inc. (NYSE: DDS) shows moderate financial fundamentals with a PE ratio of 13.31, profit margin of 10.34%, and ROE of 31.92%. The company generates $6.6B in annual revenue with weak year-over-year growth of -0.41%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze DDS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentDDS demonstrates superior asset utilization.
Valuation Score
ExcellentDDS trades at attractive valuation levels.
Growth Score
WeakDDS faces weak or negative growth trends.
Financial Health Score
ExcellentDDS maintains a strong and stable balance sheet.
Profitability Score
ModerateDDS maintains healthy but balanced margins.
Key Financial Metrics
Is DDS Expensive or Cheap?
P/E Ratio
DDS trades at 13.31 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DDS's PEG of 0.65 indicates potential undervaluation.
Price to Book
The market values Dillard's, Inc. at 3.36 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.62 times EBITDA. This is generally considered low.
How Well Does DDS Make Money?
Net Profit Margin
For every $100 in sales, Dillard's, Inc. keeps $10.34 as profit after all expenses.
Operating Margin
Core operations generate 11.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.92 in profit for every $100 of shareholder equity.
ROA
Dillard's, Inc. generates $18.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dillard's, Inc. produces operating cash flow of $721.79M, showing steady but balanced cash generation.
Free Cash Flow
Dillard's, Inc. produces free cash flow of $632.36M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $40.49 in free cash annually.
FCF Yield
DDS converts 6.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.36
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.32
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How DDS Stacks Against Its Sector Peers
| Metric | DDS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.31 | 26.65 | Better (Cheaper) |
| ROE | 31.92% | 973.00% | Weak |
| Net Margin | 10.34% | -4913.00% (disorted) | Strong |
| Debt/Equity | 0.17 | 0.61 | Strong (Low Leverage) |
| Current Ratio | 3.03 | 2.34 | Strong Liquidity |
| ROA | 18.19% | 326.00% | Weak |
DDS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dillard's, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
115.40%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
1257.86%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
312.42%
Industry Style: Cyclical, Growth, Discretionary
High Growth