DILLARD'S, INC. (DDS) Stock Analysis
DILLARD'S, INC. (DDS) Stock Analysis
Analysis from 10-Q filed 2025-12-05. Data as of Q1 2026.
Overall Grade: F (Concerning)
DILLARD'S, INC. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 27.9% | Above industry average |
| FCF Margin | 9.5% | Healthy cash flow |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Strong return on invested capital of 27.9% suggests durable competitive advantages and efficient capital allocation.
Explore DILLARD'S, INC.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: DILLARD'S, INC. earns 27.9% ROIC, Top 10% in Consumer Discretionary
DILLARD'S, INC.'s trailing-twelve-month ROIC of 27.9% ranks Top 10% in Consumer Discretionary companies (sector median: 8.8%), driven by NOPAT margin of 11.1% combined with asset turnover of 1.7x. Source: 10-Q filed 2025-12-05. Gross margin of 39.0% with operating margin at 13.5% reflects a competitive pricing environment.
| Metric | DDS | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 27.9% | Excellent | Above sector median of 8.8% |
| Return on Equity (ROE) | 30.0% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 39.0% | Good | Competitive pricing environment |
| Operating Margin | 13.5% | Good | Moderate operational efficiency |
Cash Flow: DILLARD'S, INC. generates $623.6M FCF at 9.5% margin, positive NaN/8 quarters
DILLARD'S, INC. generated $623.6M in free cash flow (TTM), a 9.5% FCF margin, a margin that ranks Top 25% in Consumer Discretionary. Operating cash flow exceeds net income by 1.3x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-12-05.
| Metric | DDS | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 9.5% | Adequate | Healthy cash generation |
| Free Cash Flow (TTM) | $623.6M | Good | Positive cash generation |
| OCF/Net Income | 1.3x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: DILLARD'S, INC. at 0.0x leverage
DILLARD'S, INC.'s debt-to-equity ratio of 0.0x reflects conservative leverage. Source: 10-Q filed 2025-12-05.
| Metric | DDS | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: DILLARD'S, INC. trades at 16.7x earnings
DILLARD'S, INC. trades at a P/E of 16.7x. Free cash flow yield of 6453.6% offers attractive cash returns relative to price.
| Metric | DDS | Rating | Context |
|---|---|---|---|
| P/E Ratio | 16.7x | Adequate | Reasonable valuation |
| EV/Sales | -0.1x | Excellent | Attractive revenue multiple |
| FCF Yield | 6453.6% | Excellent | Attractive cash return |
| Dividend Yield | 5.1% | Good | Meaningful income |
Capital Allocation: DILLARD'S, INC. returns 1120.2% shareholder yield
DILLARD'S, INC.'s total shareholder yield is 1120.2% (dividends 5.1% + buybacks 1115.1%). Source: 10-Q filed 2025-12-05.
| Metric | DDS | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 1120.2% | Excellent | Dividend + buyback yield combined |
| Buyback Yield | 1115.1% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $593.3M | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 27.9% | Top 10% | 3.2x above |
| Free Cash Flow Margin | 9.5% | Top 25% | 3.5x above |
| Gross Margin | 39.0% | Bottom 50% | 1.0x below |
| Operating Margin | 13.5% | Top 25% | 2.9x above |
| Return on Equity (ROE) | 30.0% | Top 25% | 2.8x above |
| P/E Ratio | 16.7x | N/A | - |
Financial Scorecard
| Metric | DDS | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 27.9% | Excellent | Top 10% of sector (median: 8.8%) |
| Free Cash Flow Margin | 9.5% | Adequate | Top 25% of sector (median: 2.7%) |
| Gross Margin | 39.0% | Good | Bottom 50% of sector (median: 39.5%) |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 16.7x | Adequate | Fair value |
| Free Cash Flow Yield | 64.5x | Excellent | High cash return |
Frequently Asked Questions
Q: What is DILLARD'S, INC.'s Return on Invested Capital (ROIC)?
DILLARD'S, INC. (DDS) has a trailing twelve-month Return on Invested Capital (ROIC) of 27.9%. This compares above the sector median of 8.8%. An ROIC above 20% indicates exceptional capital efficiency and strong competitive advantages.
Q: What is DILLARD'S, INC.'s Free Cash Flow Margin?
DILLARD'S, INC. (DDS) has a free cash flow margin of 9.5%, generating $623.6 million in free cash flow over the trailing twelve months. A FCF margin between 5-10% is typical for capital-intensive businesses.
Q: Is DILLARD'S, INC. stock overvalued or undervalued?
DILLARD'S, INC. (DDS) trades at a P/E ratio of 16.7x, which is above the sector median of N/A. The EV/Sales multiple is -0.1x. Free cash flow yield is 6453.6%, which represents an attractive cash return to investors.
Q: Does DILLARD'S, INC. pay a dividend?
DILLARD'S, INC. (DDS) currently pays a dividend yield of 5.1%. Including share buybacks, the total shareholder yield is 1120.2%. A yield above 4% is attractive for income investors, though sustainability should be verified through payout ratio analysis.
Q: What is DILLARD'S, INC.'s revenue and earnings growth?
DILLARD'S, INC. (DDS) declined revenue by 0.4% year-over-year. Earnings per share decreased by 1.1% compared to the prior year. Revenue decline may indicate market challenges or industry headwinds.
Q: Is DILLARD'S, INC. buying back stock?
DILLARD'S, INC. (DDS) repurchased $107.8 million of stock over the trailing twelve months. This represents a buyback yield of 1115.1%.
Q: How does DILLARD'S, INC. compare to competitors in Consumer Discretionary?
Compared to other companies in Consumer Discretionary, DILLARD'S, INC. (DDS) shows: ROIC of 27.9% is above the sector median of 8.8% (Top 6%). FCF margin of 9.5% exceeds the sector median of 2.7% (Top 16% of sector). Gross margin at 39.0% is 0.6 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.
Q: What warning signs should I watch for with DILLARD'S, INC.?
DILLARD'S, INC. (DDS) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-12-05. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.