(DBI) Designer Brands - Ratings and Ratios

Designer Brands Inc. is a leading footwear and accessories retailer operating in the United States and Canada, offering a diverse range of products under various brands, including Vince Camuto, Keds, and Lucky Brand. The companys business model is centered around its direct-to-consumer channels, including physical stores and e-commerce sites, as well as a portfolio of banners such as DSW Designer Shoe Warehouse. With a presence in both the US and Canadian markets, DBI has established itself as a significant player in the apparel retail industry.

Analyzing the companys operational segments, U.S. Retail, Canada Retail, and Brand Portfolio, its clear that DBI has a diversified revenue stream. The companys ability to manage its brand portfolio effectively, including licensing and partnerships, contributes to its overall financial performance. Additionally, DBIs e-commerce capabilities and mobile applications enhance its direct-to-consumer reach, allowing the company to compete effectively in a rapidly evolving retail landscape.

From a technical analysis perspective, DBIs stock price has been trending upward in the short term, with its 20-day Simple Moving Average (SMA) at $3.00 and 50-day SMA at $3.30, indicating a potential bullish signal. However, the stocks 200-day SMA at $5.14 suggests that it is still below its long-term trend. The Average True Range (ATR) of 0.29, representing 7.75% of the last price, indicates moderate volatility. Considering these technical indicators, a potential trading opportunity may arise if the stock price continues to trend upwards and breaks through its 50-day SMA resistance level.

Fundamentally, DBIs market capitalization stands at $145.37M USD, with a forward Price-to-Earnings (P/E) ratio of 9.51. The companys Return on Equity (RoE) is currently negative, at -3.22%, indicating that DBI is facing challenges in generating profits for its shareholders. However, the forward P/E ratio suggests that the market expects the company to improve its earnings in the future. By combining the technical and fundamental analysis, a forecast for DBIs stock price could be made. If the company can address its profitability issues and continue to grow its revenue, the stock price may potentially break through its 52-week high of $10.68. A more conservative estimate would be a price target of $5.50, representing a 49% increase from the current price, assuming DBI can stabilize its RoE and improve its earnings.

Based on the analysis, a potential trading strategy for DBI could involve monitoring the stocks price action around its 50-day SMA and 200-day SMA levels. A break above the 50-day SMA could be a bullish signal, while a failure to sustain the upward trend and a drop below the 20-day SMA could indicate a potential downturn. Investors should also keep a close eye on DBIs future earnings reports and any updates on its strategic initiatives to improve profitability.