Designer Brands Intrinsic Stock Value – Bearish Rating for Designer Brands Stock Raises Concerns in Market

November 1, 2023

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Investors in the fashion and retail sector have been alarmed by the news of Designer Brands ($NYSE:DBI) Inc receiving a bearish rating from a prominent Wall Street firm. As the market responds to this news, many are concerned about the impact this could have on the company’s stock. Designer Brands Inc is a multinational retail company that is primarily known for its designer apparel and accessories. The company’s stock has been steadily rising in recent months, making it an attractive option for investors.

The bearish rating issued to Designer Brands Inc has raised concerns in the market as investors worry about the potential impact this will have on the company’s stock. Some fear that the rating will lead to a decrease in stock prices, while others believe that the market will ultimately respond positively. It remains to be seen how the market will react, but investors should be prepared for both scenarios.

Stock Price

On Monday, shares of DESIGNER BRANDS Inc. fell despite a slight increase in price from the previous close of 10.5 to close at 10.6, up 0.7%. This bearish rating from analysts and other market professionals raises concerns in the industry about the company’s future performance. DESIGNER BRANDS has been one of the most prominent designer brands in the market in recent years, but the latest news suggests that its stock may be heading for a decline. Analysts have suggested that the brand’s focus on high-end fashion may not be sustainable, and that its current strategy may not be enough to sustain its past growth.

Moreover, the company has been struggling to compete with more affordable competitors, which could also be contributing to its current stock price decline. Investors should be wary of the situation at DESIGNER BRANDS, as it remains to be seen if the company can maintain its current position in the designer clothing market. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Designer Brands. More…

    Total Revenues Net Income Net Margin
    3.16k 138.9 4.4%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Designer Brands. More…

    Operations Investing Financing
    324.93 -200.51 -130.23
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Designer Brands. More…

    Total Assets Total Liabilities Book Value Per Share
    2.15k 1.68k 6.99
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Designer Brands are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    4.9% 13.5% 4.7%
    FCF Margin ROE ROA
    8.6% 20.4% 4.3%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Designer Brands Intrinsic Stock Value

    At GoodWhale, we have conducted an analysis of the fundamentals of DESIGNER BRANDS. After careful review, our proprietary Valuation Line has determined that the fair value of DESIGNER BRANDS share is around $9.4. As of now, the stock is trading at $10.6, which means it is a fair price that is overvalued by 13.2%. More…

  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    Designer Brands Inc. is facing fierce competition in the fashion industry from AMAGASA Co Ltd, Roots Corp, and Boot Barn Holdings Inc. Each of these companies has their own unique approach to the fashion industry, and they are all vying for a share of the market. As a result, Designer Brands Inc. must remain agile and responsive to their competitors in order to maintain success in this highly competitive landscape.

    – AMAGASA Co Ltd ($TSE:3070)

    KAMAGASA Co Ltd is a Japanese based company that specializes in the production of automotive parts and components. The company has a market cap of 2.39 billion as of 2022, reflecting its strong and steady growth throughout the years. Its Return on Equity (ROE) also stands at -145.5%, indicating that the company is able to generate a significant amount of profits relative to its shareholders’ equity. This is indicative of the company’s ability to generate substantial returns for its investors and shareholders.

    – Roots Corp ($TSX:ROOT)

    Roots Corp is a Canadian apparel and lifestyle company focused on providing quality clothing and accessories that combine style, comfort and a connection to nature. Its market cap of 110.97M as of 2022 reflects its strong financial performance, with a Return on Equity of 8.66%, which is higher than the average for the apparel and lifestyle industry. The company’s focus on quality and sustainability has enabled it to capture a large consumer base and grow its market share. Additionally, Roots Corp has been able to leverage its brand recognition and create a loyal customer base that continues to support the company.

    – Boot Barn Holdings Inc ($NYSE:BOOT)

    Boot Barn Holdings Inc is a publicly traded American retailer of western and work-related footwear, apparel, and accessories. The company operates over 300 stores throughout the United States, and its products are also available online. As of 2022, the market cap of Boot Barn Holdings Inc is 1.84 billion dollars. This market cap reflects the company’s strong financial performance and expected future growth. Additionally, Boot Barn Holdings Inc has a Return on Equity (ROE) of 23.87%. This indicates that the company is generating a high rate of return on its equity investments and is an indicator of strong financial health.

    Summary

    Designer Brands Inc. (DESN) has recently received a bearish rating, meaning that analysts are pessimistic about the stock’s performance. Investors should be aware that bearish ratings can have a negative impact on stock prices, with investors selling off shares in the short-term. However, before making any decisions, investors should consider a variety of factors including the company’s financial performance, potential growth opportunities, industry trends, competitor analysis and any current news or events. A thorough analysis of the company and its position in the market will help investors make an informed decision on whether DESN is a good investment.

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