Designer Brands Stock Buy Hold or Sell Recommendation

DBI Stock  USD 10.93  0.31  2.92%   
Considering the 90-day investment horizon and your complete indifference towards market risk, our recommendation regarding Designer Brands is 'Buy'. Macroaxis provides Designer Brands buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding DBI positions. The advice algorithm takes into account all of Designer Brands' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Designer Brands' buy or sell advice are summarized below:
Real Value
9.24
Target Price
12.67
Hype Value
10.93
Market Value
10.93
Naive Value
10.54
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Designer Brands given historical horizon and risk tolerance towards Designer Brands. When Macroaxis issues a 'buy' or 'sell' recommendation for Designer Brands, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Designer Brands Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more detail on how to invest in Designer Stock please use our How to Invest in Designer Brands guide.
In addition, we conduct extensive research on individual companies such as Designer and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Designer Brands. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics.

Execute Designer Brands Buy or Sell Advice

The Designer recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Designer Brands. Macroaxis does not own or have any residual interests in Designer Brands or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Designer Brands' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Designer BrandsBuy Designer Brands
Buy

Market Performance

OKDetails

Volatility

Somewhat reliableDetails

Hype Condition

StaleDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Hyperactively responds to market trendsDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

HoldDetails

Reporting Quality (M-Score)

UnavailableDetails
For the selected time horizon Designer Brands has a Risk Adjusted Performance of 0.0788, Jensen Alpha of (0), Total Risk Alpha of (0.30), Sortino Ratio of 0.0826 and Treynor Ratio of 0.1243
Our trade advice tool can cross-verify current analyst consensus on Designer Brands and to analyze the company potential to grow in the current economic cycle. To make sure Designer Brands is not overpriced, please confirm all Designer Brands fundamentals, including its cash and equivalents, cash flow from operations, and the relationship between the gross profit and debt to equity . Given that Designer Brands has a price to book of 1.69 X, we urge you to verify Designer Brands market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Designer Brands Trading Alerts and Improvement Suggestions

Designer Brands is unlikely to experience financial distress in the next 2 years
Over 82.0% of the company shares are held by institutions such as insurance companies
Latest headline from investing.com: Designer brands executive sells over 174k in company stock

Designer Brands Returns Distribution Density

The distribution of Designer Brands' historical returns is an attempt to chart the uncertainty of Designer Brands' future price movements. The chart of the probability distribution of Designer Brands daily returns describes the distribution of returns around its average expected value. We use Designer Brands price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Designer Brands returns is essential to provide solid investment advice for Designer Brands.
Mean Return
0.38
Value At Risk
-4.34
Potential Upside
4.85
Standard Deviation
2.99
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Designer Brands historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Designer Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Designer Brands is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Designer Brands backward and forwards among themselves. Designer Brands' institutional investor refers to the entity that pools money to purchase Designer Brands' securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
William Blair Investment Management, Llc2023-12-31
M
American Century Companies Inc2023-12-31
984.9 K
Geode Capital Management, Llc2023-12-31
945.5 K
Morgan Stanley - Brokerage Accounts2023-12-31
887.3 K
Royce & Associates, Lp2023-12-31
667 K
Goldman Sachs Group Inc2023-12-31
659.9 K
Brandywine Global Investment Mgmt Llc2023-12-31
650.4 K
Hotchkis & Wiley Capital Management Llc2023-12-31
578.5 K
Prudential Financial Inc2023-12-31
563.2 K
Pacer Advisors, Inc.2023-12-31
8.3 M
Blackrock Inc2023-12-31
7.2 M
Note, although Designer Brands' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Designer Brands Cash Flow Accounts

201920202021202220232024 (projected)
Capital Expenditures77.8M31.1M33.0M55.0M55.0M66.2M
Net Income94.5M(488.7M)154.5M162.7M29.1M46.8M
Change To Inventory9.3M160.3M(113.2M)(16.0M)76.2M80.0M
End Period Cash Flow86.6M59.6M74.5M58.8M49.2M78.3M
Change In Cash(14.0M)(27.0M)14.9M(15.7M)(9.6M)(9.1M)
Free Cash Flow118.9M(184.9M)138.4M146.5M107.4M85.7M
Depreciation86.6M88.0M77.9M81.3M66.1M60.0M
Other Non Cash Items12.1M144.5M7.5M19.2M52.7M27.4M
Investments(27.4M)2.6M(35.0M)(88.1M)(182.5M)(173.4M)
Net Borrowings30M153.7M(112.5M)42.8M38.6M47.2M
Dividends Paid79.8M72.6M7.2M13.5M(12.2M)(11.6M)
Change To Netincome26.2M199.2M30.4M(4.2M)(4.8M)(4.6M)

Designer Brands Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Designer Brands or Specialty Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Designer Brands' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Designer stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.0018
β
Beta against NYSE Composite2.98
σ
Overall volatility
2.97
Ir
Information ratio 0.08

Designer Brands Volatility Alert

Designer Brands currently demonstrates below-average downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.0. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Designer Brands' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Designer Brands' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Designer Brands Fundamentals Vs Peers

Comparing Designer Brands' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Designer Brands' direct or indirect competition across all of the common fundamentals between Designer Brands and the related equities. This way, we can detect undervalued stocks with similar characteristics as Designer Brands or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Designer Brands' fundamental indicators could also be used in its relative valuation, which is a method of valuing Designer Brands by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Designer Brands to competition
FundamentalsDesigner BrandsPeer Average
Return On Equity0.0732-0.31
Return On Asset0.0208-0.14
Profit Margin0.01 %(1.27) %
Operating Margin(0.06) %(5.51) %
Current Valuation1.8 B16.62 B
Shares Outstanding49.51 M571.82 M
Shares Owned By Insiders18.09 %10.09 %
Shares Owned By Institutions81.91 %39.21 %
Number Of Shares Shorted10.02 M4.71 M
Price To Earning7.22 X28.72 X
Price To Book1.69 X9.51 X
Price To Sales0.20 X11.42 X
Revenue3.07 B9.43 B
Gross Profit1.08 B27.38 B
EBITDA143.49 M3.9 B
Net Income29.06 M570.98 M
Cash And Equivalents58.77 M2.7 B
Cash Per Share0.79 X5.01 X
Total Debt1.24 B5.32 B
Debt To Equity3.23 %48.70 %
Current Ratio1.35 X2.16 X
Book Value Per Share6.28 X1.93 K
Cash Flow From Operations162.4 M971.22 M
Short Ratio7.70 X4.00 X
Earnings Per Share0.46 X3.12 X
Price To Earnings To Growth2.61 X4.89 X
Target Price11.0
Number Of Employees14 K18.84 K
Beta2.05-0.15
Market Capitalization607.89 M19.03 B
Total Asset2.29 B29.47 B
Retained Earnings98.9 M9.33 B
Working Capital155.16 M1.48 B
Note: Disposition of 16125 shares by Mark Haley of Designer Brands at 10.842 subject to Rule 16b-3 [view details]

Designer Brands Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Designer . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Designer Brands Buy or Sell Advice

When is the right time to buy or sell Designer Brands? Buying financial instruments such as Designer Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Other Current Liabilities163.3M138.7M112.0M95.4M
Total Assets2.0B2.0B2.3B1.3B

Use Investing Ideas to Build Portfolios

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.

Did You Try This Idea?

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Natural Foods
Natural Foods Theme
Companies producing natural foods including dairy products and different types of meets. The Natural Foods theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Natural Foods Theme or any other thematic opportunities.
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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:
Check out Designer Brands Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more detail on how to invest in Designer Stock please use our How to Invest in Designer Brands guide.
Note that the Designer Brands information on this page should be used as a complementary analysis to other Designer Brands' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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Is Designer Brands' industry 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
(0.74)
Dividend Share
0.2
Earnings Share
0.46
Revenue Per Share
50.166
Quarterly Revenue Growth
(0.01)
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.