Designer Brands Inc. (NYSE:DBI) has a beta of 2.61. The stock’s Relative Strength Index (RSI) is 49.37, with weekly volatility at 4.37% and ATR at 1.00. The DBI stock’s 52-week price range has touched low of $4.31 and a $20.48 high. Its shares traded lower over the last trading session, losing -1.36% on 05/25/21. The shares fell to a low of $17.99 before closing at $18.09. Intraday shares traded counted 1.07 million, which was 26.9% higher than its 30-day average trading volume of 1.47M. DBI’s previous close was $18.34 while the outstanding shares total 72.39M.
Investors have identified the Apparel Retail company Designer Brands Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $1.31 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Designer Brands Inc. (DBI) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For DBI, the company has in raw cash 59.58 million on their books with 62.5 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 780.59 million total, with 752.68 million as their total liabilities.
DBI were able to record -184.91 million as free cash flow during the 08/31/2021 quarter of the year, this saw their quarterly net cash flow reduce by -26.98 million. In cash movements, the company had a total of -153.79 million as operating cash flow.
Potential earnings growth for Designer Brands Inc. (DBI)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/31/2021 quarter of the year, Designer Brands Inc. recorded a total of 609.35 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -36.15% coming in sequential stages and their sales for the 08/31/2021 quarter reducing by -7.14%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 474.35 million trying to sell their products during the last quarter, with the result yielding a gross income of 135.0 million. This allows shareholders to hold on to 72.39M with the recently reported earning now reading -1.84 cents per share. This is a figure that compared to analyst’s prediction for their 08/31/2021 (-0.53 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.16 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on DBI sounds very interesting.
Is the stock of DBI attractive?
In related news, Executive Chairman, SCHOTTENSTEIN JAY L bought 191,832 shares of the company’s stock in a transaction that recorded on Mar 25. The purchase was performed at an average price of 13.73, for a total value of 2,633,853. As the purchase deal closes, the Executive Chairman, SCHOTTENSTEIN JAY L now bought 710,791 shares of the company’s stock, valued at 9,994,246. Also, Director, Schottenstein Joseph A. bought 273,099 shares of the company’s stock in a deal that was recorded on Mar 24. The shares were cost at an average price of 14.11 per share, with a total market value of 3,853,427. Following this completion of disposal, the V Chairman & President, Ferree Deborah L now holds 94,842 shares of the company’s stock, valued at 1,443,495. In the last 6 months, insiders have changed their ownership in shares of company stock by 2.30%.
0 out of 6 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Designer Brands Inc.. 0 analysts has assigned a Sell rating on the DBI stock. The 12-month mean consensus price target for the company’s shares has been set at $17.25.