Duluth Holdings Inc. Fundamental Analysis (NASDAQ: DLTH)
Duluth Holdings Inc. Fundamental Analysis (NASDAQ: DLTH)
Duluth Holdings Inc. (NASDAQ: DLTH) shows weak financial fundamentals with a PE ratio of 25.78, profit margin of 1.07%, and ROE of 3.54%. The company generates $0.6B in annual revenue with weak year-over-year growth of -9.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 18.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DLTH's fundamental strength across five key dimensions:
Efficiency Score
WeakDLTH struggles to generate sufficient returns from assets.
Valuation Score
ModerateDLTH shows balanced valuation metrics.
Growth Score
ModerateDLTH shows steady but slowing expansion.
Financial Health Score
ExcellentDLTH maintains a strong and stable balance sheet.
Profitability Score
WeakDLTH struggles to sustain strong margins.
Key Financial Metrics
Is DLTH Expensive or Cheap?
P/E Ratio
DLTH trades at 25.78 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DLTH's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Duluth Holdings Inc. at 0.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.23 times EBITDA. This is generally considered low.
How Well Does DLTH Make Money?
Net Profit Margin
For every $100 in sales, Duluth Holdings Inc. keeps $1.07 as profit after all expenses.
Operating Margin
Core operations generate 2.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.54 in profit for every $100 of shareholder equity.
ROA
Duluth Holdings Inc. generates $1.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Duluth Holdings Inc. produces operating cash flow of $69.02M, showing steady but balanced cash generation.
Free Cash Flow
Duluth Holdings Inc. generates strong free cash flow of $61.99M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.63 in free cash annually.
FCF Yield
DLTH converts 37.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How DLTH Stacks Against Its Sector Peers
| Metric | DLTH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.78 | 23.74 | Neutral |
| ROE | 3.54% | 967.00% | Weak |
| Net Margin | 1.07% | -3005.00% (disorted) | Weak |
| Debt/Equity | 0.79 | 0.59 | Weak (High Leverage) |
| Current Ratio | 1.88 | 2.33 | Neutral |
| ROA | 1.50% | 324.00% | Weak |
DLTH outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Duluth Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-16.88%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-213.40%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-55.25%
Industry Style: Cyclical, Growth, Discretionary
Declining