Dillard’s Stock Fair Value – DILLARD’S Reports Fourth Quarter FY2023 Earnings Results on February 21, 2023.
March 8, 2023
Earnings Overview
On February 21 2023, DILLARD’S ($NYSE:DDS) reported its financial results for the fourth quarter of FY2023, which had ended on January 31 2023. Total revenue for the quarter was USD 289.2 million, reflecting a 10.0% decrease from the same period in the prior year. Net income, however, increased by 0.4% to USD 2162.5 million compared to the same quarter in the previous year.
Stock Price
The stock opened at $391.7, and by the end of the trading day had plunged to $337.0, a decrease of 17.1% from the previous closing price of $406.6. The company attributed the sharp decrease in stock price to its weaker than expected fourth quarter FY2023 earnings results. Revenue was below analyst estimates, while operating expenses and net profit were above estimates. This caused investors to worry about the company’s ability to grow and maintain its market position in a highly competitive environment.
The overall reaction to DILLARD’S fourth quarter FY2023 earnings results was negative, and analysts believe the stock will remain volatile in the short-term as investors continue to monitor the company’s performance. Despite this, many investors remain confident in the company’s long-term prospects and believe DILLARD’S can still reach its potential and deliver value for shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dillard’s. More…
| Total Revenues | Net Income | Net Margin |
| 7k | 891.6 | 12.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dillard’s. More…
| Operations | Investing | Financing |
| 948.3 | -235.8 | -769 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dillard’s. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.34k | 1.73k | 93.98 |
Key Ratios Snapshot
Some of the financial key ratios for Dillard’s are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.3% | 88.8% | 16.3% |
| FCF Margin | ROE | ROA |
| 11.8% | 44.3% | 21.3% |
Analysis – Dillard’s Stock Fair Value
GoodWhale has conducted an in-depth analysis of DILLARD’S financials, and our proprietary Valuation Line has calculated the intrinsic value of DILLARD’S share to be around $210.4. Currently, DILLARD’S stock is trading at $337.0, which is overvalued by 60.1%. This suggests that investors may not be accurately pricing DILLARD’S stock and may be paying more than it is truly worth. More…
Peers
Dillard’s Inc, Macy’s Inc, Nordstrom Inc, and Kohl’s Corp are all in competition with each other. They are all trying to get the customer’s money by offering different products and services.
– Macy’s Inc ($NYSE:M)
Macy’s Inc is an American department store chain founded in 1858. It is one of the largest department store chains in the United States with around 850 stores in 45 states. Macy’s Inc has a market cap of 5.04B as of 2022 and a Return on Equity of 40.81%. The company operates in the Retail industry and its headquarters is in Cincinnati, Ohio.
– Nordstrom Inc ($NYSE:JWN)
Nordstrom is an American luxury fashion retailer founded in 1901. It has a market cap of $3.09B as of 2022 and a Return on Equity of 70.09%. Nordstrom operates in over 38 countries and has over 350 stores across the globe. The company offers a wide range of products and services, including apparel, shoes, handbags, jewelry, and beauty products. Nordstrom also has an e-commerce platform that offers free shipping and returns.
– Kohl’s Corp ($NYSE:KSS)
Kohl’s is a leading retailer that operates more than 1,100 department stores across the United States. The company offers a wide variety of merchandise, including apparel, shoes, and accessories for men, women, and children, as well as home products. Kohl’s also provides exclusive lines from top brands such as Nike, Adidas, and Under Armour. In addition to its retail stores, Kohl’s operates an e-commerce site and a mobile app.
Kohl’s has a market capitalization of 3.3 billion as of 2022 and a return on equity of 16.46%. The company has been in operation for over 50 years and has a strong reputation for providing quality merchandise at competitive prices. Kohl’s is committed to offering an enjoyable shopping experience for its customers and provides a variety of convenient shopping options, such as online and mobile shopping.
Summary
Investors were disappointed with DILLARD’S fourth quarter earnings results for FY2023, as the company reported a 10.0% decrease in total revenue compared to the same period of the previous year. Despite this, net income increased by 0.4% year-over-year to USD 2162.5 million, a sign of resilience. However, the stock price dropped, reflecting investor sentiment. Investors should continue to monitor DILLARD’S performance to determine if the current share price is an attractive buying opportunity.
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