Why is Designer Brands, Inc. ?
1
The company declared negative results in Jan'25 after flat results in Oct'24
- NET PROFIT(HY) At USD 1 MM has Grown at -94.63%
- ROCE(HY) Lowest at -9.98%
- DEBT-EQUITY RATIO (HY) Highest at 465.52 %
2
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -23.66%, its profits have fallen by -63.1%
3
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 13.22% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -23.66% returns
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Designer Brands, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Designer Brands, Inc.
-23.66%
-0.40
84.68%
S&P 500
13.22%
0.65
20.20%
Quality key factors
Factor
Value
Sales Growth (5y)
-1.05%
EBIT Growth (5y)
17.83%
EBIT to Interest (avg)
2.68
Debt to EBITDA (avg)
3.70
Net Debt to Equity (avg)
2.39
Sales to Capital Employed (avg)
3.22
Tax Ratio
1.69%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
11.03%
ROE (avg)
17.49%
Valuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
1.39
EV to EBIT
20.99
EV to EBITDA
8.94
EV to Capital Employed
1.12
EV to Sales
0.33
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
5.35%
ROE (Latest)
5.47%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
11What is working for the Company
PRE-TAX PROFIT(Q)
At USD 18.7 MM has Grown at 25,877.78%
NET PROFIT(Q)
At USD 13.77 MM has Grown at 4,321.87%
DIVIDEND PAYOUT RATIO(Y)
Highest at 22.97%
DEBTORS TURNOVER RATIO(HY)
Highest at 55.39 times
RAW MATERIAL COST(Y)
Fallen by -27.92% (YoY
-13What is not working for the Company
NET PROFIT(HY)
At USD 1 MM has Grown at -94.63%
ROCE(HY)
Lowest at -9.98%
DEBT-EQUITY RATIO
(HY)
Highest at 465.52 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.85 times
Here's what is working for Designer Brands, Inc.
Pre-Tax Profit
At USD 18.7 MM has Grown at 25,877.78%
over average net sales of the previous four periods of USD 0.07 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 13.77 MM has Grown at 4,321.87%
over average net sales of the previous four periods of USD -0.33 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Debtors Turnover Ratio
Highest at 55.39 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend Payout Ratio
Highest at 22.97% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -27.92% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Designer Brands, Inc.
Debt-Equity Ratio
Highest at 465.52 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 2.85 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio






