By analyzing existing fundamental drivers between Designer Brands and Carters, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Carters with a short position in Designer Brands. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Designer Brands has an asset utilization ratio of 418.14 percent. This implies that the company is making $4.18 for each dollar of assets. An increasing asset utilization means that Designer Brands is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Designer or Wolverine is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Designer Brands dividends
A dividend is the distribution of a portion of Designer Brands earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Designer Brands dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Designer one year expected dividend income is about USD0.15 per share.
The Designer Brands' current
Dividend Payout Ratio is estimated to increase to 0.44, while
Dividends Paid is forecasted to increase to (11.6
M).
Investing in dividend-paying stocks, such as Designer Brands is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Designer Brands must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Designer Brands. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Designer Brands's Liquidity
Designer Brands
financial leverage refers to using borrowed capital as a funding source to finance Designer Brands ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Designer Brands financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Designer Brands' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Designer Brands' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Designer Brands's total debt and its cash.
Correlation Between Designer and Wolverine World Wide
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Designer Brands together with similar or unrelated positions with a negative correlation. For example, you can also add Wolverine World to your portfolio. If Wolverine World is not perfectly correlated to Designer Brands it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Designer Brands, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Designer Brands and Wolverine World in your portfolio? Please note if you are using this as a pair-trade strategy between Designer Brands and Wolverine World, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between DBI and WWW for more information.
Breaking down Designer Brands Further
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now take a look at Designer Brands revenue. Based on the latest financial disclosure, Designer Brands reported 3.2
B of revenue. This is 55.12% lower than that of the Consumer Cyclical sector and significantly higher than that of the
Apparel Retail industry. The revenue for all United States stocks is 66.08% higher than that of the firm. As for Carters we see revenue of 3.48
B, which is much higher than that of the Apparel Retail
| Designer | 3.2 Billion |
| Sector | 0.0 |
| Carters | 3.48 Billion |
Designer Brands implied volatility may change after the rise
The expected short fall is down to -3.07 as of today. Designer Brands shows above-average downside volatility for the selected time horizon. We advise investors to inspect Designer Brands further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Designer Brands future alpha. 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 bullying 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 stocks as prices fall.
Designer Brands Implied Volatility
Designer Brands' implied volatility exposes the market's sentiment of Designer Brands stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Designer Brands' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Designer Brands stock will not fluctuate a lot when Designer Brands' options are near their expiration.
Our Takeaway on Designer Brands Investment
While other entities under the apparel retail industry are still a bit expensive, Designer Brands may offer a potential longer-term growth to stockholders. The bottom line, as of the 2nd of June 2022, our research shows that Designer Brands is a rather not too volatile investment opportunity with a
low odds of distress in the next two years. From a slightly different view, the entity currently appears to be
undervalued. Our final 90 days recommendation on the company is
Strong Buy.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Designer Brands. Please refer to our
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