Designer Brands Price To Earning vs. Return On Asset

DBI Stock  USD 4.89  0.23  4.94%   
Based on Designer Brands' profitability indicators, Designer Brands is performing exceptionally good at the moment. It has a great risk to showcase excellent profitability results in December. Profitability indicators assess Designer Brands' ability to earn profits and add value for shareholders. As of now, Designer Brands' Operating Cash Flow Sales Ratio is decreasing as compared to previous years. The Designer Brands' current Price Sales Ratio is estimated to increase to 1.28, while Days Sales Outstanding is projected to decrease to 3.57. As of now, Designer Brands' Net Income is decreasing as compared to previous years. The Designer Brands' current Net Income From Continuing Ops is estimated to increase to about 56 M, while Accumulated Other Comprehensive Income is projected to decrease to (5.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.30.317
Notably Down
Pretty Stable
Net Profit Margin0.06140.0095
Way Up
Slightly volatile
Operating Profit Margin0.0970.0235
Way Up
Slightly volatile
Pretax Profit Margin0.09810.0131
Way Up
Slightly volatile
Return On Assets0.110.014
Way Up
Slightly volatile
Return On Equity0.150.0809
Way Up
Slightly volatile
For Designer Brands profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Designer Brands to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Designer Brands utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Designer Brands's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Designer Brands over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in Designer Stock please use our How to Invest in Designer Brands guide.
Is Specialty Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Designer Brands. If investors know Designer will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Designer Brands listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.57)
Dividend Share
0.2
Earnings Share
(0.03)
Revenue Per Share
53.234
Quarterly Revenue Growth
(0.03)
The market value of Designer Brands is measured differently than its book value, which is the value of Designer that is recorded on the company's balance sheet. Investors also form their own opinion of Designer Brands' value that differs from its market value or its book value, called intrinsic value, which is Designer Brands' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Designer Brands' market value can be influenced by many factors that don't directly affect Designer Brands' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Designer Brands' value and its price as these two are different measures arrived at by different means. Investors typically determine if Designer Brands is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Designer Brands' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Designer Brands Return On Asset vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Designer Brands's current stock value. Our valuation model uses many indicators to compare Designer Brands value to that of its competitors to determine the firm's financial worth.
Designer Brands is rated # 5 in price to earning category among its peers. It also is rated # 5 in return on asset category among its peers . The ratio of Price To Earning to Return On Asset for Designer Brands is about  1,078 . The Designer Brands' current Return On Assets is estimated to increase to 0.11. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Designer Brands' earnings, one of the primary drivers of an investment's value.

Designer Return On Asset vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Designer Brands

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
7.22 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Designer Brands

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0067
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Designer Return On Asset Comparison

Designer Brands is currently under evaluation in return on asset category among its peers.

Designer Brands Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Designer Brands, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Designer Brands will eventually generate negative long term returns. The profitability progress is the general direction of Designer Brands' change in net profit over the period of time. It can combine multiple indicators of Designer Brands, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-5.6 M-5.9 M
Operating Income72.4 M93.9 M
Income Before Tax40.2 M70.8 M
Net Income Applicable To Common Shares146.4 M153.7 M
Net Income29.1 M46.8 M
Income Tax Expense11 M10.4 M
Total Other Income Expense Net-32.2 M-30.6 M
Net Income From Continuing Ops29.2 M56 M
Non Operating Income Net Other-44.7 M-42.4 M
Interest Income17.1 M9.3 M
Net Interest Income-32.2 M-30.6 M
Change To Netincome-4.8 M-4.6 M
Net Income Per Share 0.47  1.71 
Income Quality 5.59  1.29 
Net Income Per E B T 0.72  0.63 

Designer Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Designer Brands. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Designer Brands position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Designer Brands' important profitability drivers and their relationship over time.

Use Designer Brands in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Designer Brands position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Designer Brands will appreciate offsetting losses from the drop in the long position's value.

Designer Brands Pair Trading

Designer Brands Pair Trading Analysis

The ability to find closely correlated positions to Designer Brands could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Designer Brands when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Designer Brands - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Designer Brands to buy it.
The correlation of Designer Brands is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Designer Brands moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Designer Brands moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Designer Brands can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Designer Brands position

In addition to having Designer Brands in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether Designer Brands offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Designer Brands' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Designer Brands Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Designer Brands Stock:
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For more detail on how to invest in Designer Stock please use our How to Invest in Designer Brands guide.
You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
To fully project Designer Brands' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Designer Brands at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Designer Brands' income statement, its balance sheet, and the statement of cash flows.
Potential Designer Brands investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Designer Brands investors may work on each financial statement separately, they are all related. The changes in Designer Brands's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Designer Brands's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.