Designer Brands Inc. Class A Common Stock (DBI)
StalwartFairStock Score: 51/100 — MIXED
Key Financials
| Current Price | $6.41 |
| Market Cap | $416M |
| P/E Ratio | -37.71 |
| ROE | -1.96% |
| Dividend Yield | 2.37% |
| Sector | Consumer Cyclical |
Strengths
- Generates $62 million in annual free cash flow (15.0% yield on market cap)
- Attractive 3.0% dividend yield providing steady income returns
- Established organization with 13,000 employees providing operational scale
Concerns
- High leverage at 4.30x debt-to-equity increases financial risk and interest expense burden
- Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions
- Altman Z-Score of 0.6 places it in the financial distress zone—elevated bankruptcy risk
AI Analysis
Designer Brands Inc. Class A Common Stock is a micro-cap consumer cyclical company valued at $416 million. Revenue stands at $2.9 billion. From a quality standpoint, Designer shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 0.6 warrants caution. On valuation, the stock is strong 8.8% free cash flow yield. Growth dynamics show revenue growing at 0.0% and profit growth of 47.6%. The 3.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 51/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $62 million in annual free cash flow (15.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
Elevated leverage at 4.3x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer