Dillards Inc. (DDS:NYE) Analysts Hold, but Fundamental Analysis is Very Bullish

STA Research
by: STA Research
Dillards Inc.

Based on the Dillards stock forecast from 4 analysts, the average analyst DDS stock price target is USD 224.00 over the next 12 months. Dillards Inc’s average analyst rating is Hold. Stock Target Advisor’s own stock analysis of DDS stock is Bullish, which is based on 15 positive signals and 3 negative signals. At the last closing, DDS stock price was USD 292.75DDS stock price has changed by +54.37% over the past week, +83.28% over the past month and +52.89% over the last year.

Dillard’s, Inc. operates retail department stores in the southeastern, southwestern, and midwestern areas of the United States. Its stores offer merchandise, including fashion apparel for women, men, and children; and accessories, cosmetics, home furnishings, and other consumer goods. As of January 29, 2022, the company operated 280 Dillard’s stores, including 30 clearance centers, and an Internet store at dillards.com. It also engages in the general contracting construction activities. The company was founded in 1938 and is based in Little Rock, Arkansas.

 

What we like:

High market capitalization:

DDS stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

DDS stock has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Superior total returns:

DDS stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

High dividend returns:

DDS stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis, for investors seeking high income yields.

Superior return on equity:

DDS stock forecast has shown that the company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

DDS stock forecast has shown that the company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

DDS stock forecast has shown that the company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt:

The company is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the DDS stock forecast and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow:

DDS stock had positive total cash flow in the most recent four quarters.

Positive free cash flow:

DDS stock had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis:

DDS stock price is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Earnings Growth:

DDS stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth:

DDS stock price has shown top quartile revenue growth in the previous 5 years compared to its sector.

Superior Dividend Growth:

DDS stock has shown top quartile dividend growth in the previous 5 years compared to its sector

High Gross Profit to Asset Ratio:

DDS stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

High volatility:

DDS stock forecast has shown that the total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to book value:

DDS stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

DDS stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Disclaimer

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