DDS

Dillard's

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Department Stores

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/21/26

Business Summary

DDS operates a traditional department store model, generating revenue through curated merchandise assortments across apparel, cosmetics, and home categories within physical retail locations. The company converts sales into cash through disciplined inventory management and cost control, as reflected in its 32.10% operating margin. Its moat is not technological dominance but operational execution, vendor relationships, and brand loyalty within regional markets. Strong returns on invested capital suggest that management allocates capital efficiently within a mature retail footprint, extracting high cash returns from established assets rather than relying on aggressive expansion.

 


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VALUATION

P/E

16.4

Market Cap ($M USD)

$9,303

Forward P/E

18.3

PEG

1.7

PRICE TO SALES

1.4

PRICE TO BOOK

5.2

EV / EBITDA

9.6

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

0.20%

Annual Payout

$1.20

Payout Ratio

3.00%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

14.90%

Financial Health & Profitability

Earnings Per Share

$36.42

Next Year EPS Growth Estimate

$32.60

Next Year Revenue Growth Estimate

1.10%

Return on Equity (ROE)

32.10%

FREE CASH FLOW

Operating Margin

10.50%

Debt-to-Equity

0.3

Piotroski F-Score

6

Altman Z-Score

8.8

Return on Invested Capital (ROIC)

24.10%

Current Ratio

2.7

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

At 16.4x earnings and 18.3x forward earnings, the market is not pricing DDS as a distressed retailer, but neither is it pricing in aggressive growth, especially with a PEG Forward of 1.7 suggesting growth is not particularly cheap. The Altman Z-Score of 8.8 signals exceptional balance sheet safety and very low bankruptcy risk, reinforcing financial durability. However, with Return on Equity at just 1.10% despite a strong 24.10% ROIC and a 32.10% operating margin, the capital structure and equity efficiency raise questions. Overall, this looks like a financially stable operator trading at a fair-to-slightly-full valuation rather than a clear mispricing.

AI Exposure / Tech Reliance

Department Stores operate in a structurally pressured segment where AI and data analytics increasingly drive inventory optimization, pricing strategy, and customer targeting. DDS’s strong 32.10% operating margin suggests operational discipline that could benefit from automation and analytics leverage. However, the model remains heavily exposed to physical retail dynamics, making tech adaptation necessary but not transformative.

The Bull Case

A GARP or deep value investor would focus on the 24.10% ROIC, which signals that management is generating strong returns on invested capital despite operating in a challenged retail segment. The 32.10% operating margin is exceptionally strong for Consumer Cyclical retail, pointing to disciplined cost control and pricing power. A Piotroski F-Score of 6 indicates reasonable financial stability, not elite, but solid enough to avoid distress classification. With a modest 16.4 P/E, strong current ratio of 2.7, and an Altman Z-Score of 8.8, this is a balance-sheet-secure retailer generating meaningful operating profitability that could appeal to institutional capital seeking durable cash generation without excessive leverage risk.

The Bear Case

The glaring issue is the 10.50% Debt/Equity combined with a PEG Forward of 1.7, implying that growth is not compelling relative to valuation. Short interest at 14.90% of float signals that a meaningful segment of the market is betting against the stock. The Forward P/E of 18.3 being higher than the trailing 16.4 suggests anticipated earnings compression or uncertainty despite EPS of 9.6 and EPS Next Year (Est.) of $36.42 creating metric inconsistency that undermines confidence. Add in the minimal 0.3 yield and a payout ratio listed at $1.20, and income investors have little downside cushion if operating conditions weaken.

Market Sentiment & Smart Money

Short Interest %

26.80%

Analyst Consensus

3.8

Average Analyst Price Target

$494.75

Institutional Ownership %

67.80%

1-Year Beta

1.04

Insider Buying % (6 Mo)

32.70%%

Distance to 52-Week High

80.30%

Distance to 52-Week Low

196.20%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.