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Dillard's (DDS)
NYSE:DDS
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Dillard's (DDS) AI Stock Analysis

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DDS

Dillard's

(NYSE:DDS)

Rating:77Outperform
Price Target:
$588.00
▲(1.91% Upside)
Dillard's strong financial performance, characterized by robust profitability and a solid balance sheet, is the primary driver of its stock score. The technical analysis suggests bullish momentum, although caution is advised due to overbought signals. The attractive valuation, with a low P/E ratio and high dividend yield, further supports the stock's appeal.

Dillard's (DDS) vs. SPDR S&P 500 ETF (SPY)

Dillard's Business Overview & Revenue Model

Company DescriptionDillard's, Inc. (DDS) is a leading retail department store chain based in the United States, operating primarily in the fashion and home goods sectors. The company offers a wide range of products including apparel, accessories, cosmetics, and home furnishings, catering to a diverse customer base. Dillard's operates its stores in a traditional department store format, as well as through an online platform, providing customers with a seamless shopping experience.
How the Company Makes MoneyDillard's generates revenue primarily through the sale of merchandise in its department stores and online. The company's key revenue streams include women's, men's, and children's apparel, footwear, accessories, and home goods. Additionally, Dillard's earns income from its private label credit card program, which offers financing options to customers while generating interest income. Seasonal sales events, promotions, and clearance sales also contribute to revenue by attracting customers and increasing foot traffic. The company maintains partnerships with various brands and designers, enhancing its product offerings and driving sales. Furthermore, Dillard's leverages its loyalty programs and marketing initiatives to retain customers and encourage repeat purchases.

Dillard's Financial Statement Overview

Summary
Dillard's financial statements reflect strong profitability with a healthy gross profit margin and solid net profit margin. The balance sheet is robust with low leverage and high return on equity, while cash flow generation has improved significantly, enhancing financial flexibility.
Income Statement
78
Positive
Dillard's has shown a strong recovery in its income statement metrics over the years. The TTM data indicates a healthy gross profit margin of 39.37% and a net profit margin of 8.74%, which are competitive within the department store industry. Revenue growth has been volatile, with a significant increase in the TTM period following a decline in the previous year. EBIT and EBITDA margins are solid, reflecting efficient cost management. However, the company needs to maintain consistent revenue growth to sustain profitability.
Balance Sheet
82
Very Positive
The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.22 in the TTM period, indicating conservative leverage. Return on equity is robust at 28.43%, showcasing effective use of shareholder funds. The equity ratio is healthy, suggesting a stable asset base. Overall, Dillard's balance sheet is well-positioned to support future growth and withstand economic fluctuations.
Cash Flow
75
Positive
Cash flow metrics reveal a positive trajectory with a 25.06% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is strong at 0.89, indicating good cash generation relative to earnings. The free cash flow to net income ratio is also favorable. Despite previous fluctuations, the recent improvement in cash flow generation enhances the company's financial flexibility.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.59B6.59B6.87B7.00B6.62B4.43B
Gross Profit2.59B2.67B2.84B3.01B2.88B1.36B
EBITDA921.88M949.10M1.14B1.34B1.33B112.52M
Net Income575.66M593.48M738.85M891.64M862.47M-71.70M
Balance Sheet
Total Assets3.68B3.53B3.45B3.34B3.25B3.09B
Cash, Cash Equivalents and Short-Term Investments1.21B1.04B956.32M799.20M716.80M360.30M
Total Debt551.20M555.32M564.44M555.20M608.80M613.70M
Total Liabilities1.20B1.73B1.75B1.73B1.79B1.65B
Stockholders Equity2.48B1.80B1.70B1.61B1.45B1.44B
Cash Flow
Free Cash Flow770.60M609.58M750.65M828.20M1.18B192.50M
Operating Cash Flow857.54M714.13M883.59M948.30M1.28B252.90M
Investing Cash Flow-146.63M-269.73M-115.59M-69.79M-69.79M-48.38M
Financing Cash Flow-645.72M-534.83M-620.04M-768.97M-853.81M-121.30M

Dillard's Technical Analysis

Technical Analysis Sentiment
Positive
Last Price576.96
Price Trends
50DMA
487.48
Positive
100DMA
434.14
Positive
200DMA
426.27
Positive
Market Momentum
MACD
25.83
Negative
RSI
72.22
Negative
STOCH
96.79
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DDS, the sentiment is Positive. The current price of 576.96 is above the 20-day moving average (MA) of 528.37, above the 50-day MA of 487.48, and above the 200-day MA of 426.27, indicating a bullish trend. The MACD of 25.83 indicates Negative momentum. The RSI at 72.22 is Negative, neither overbought nor oversold. The STOCH value of 96.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DDS.

Dillard's Risk Analysis

Dillard's disclosed 25 risk factors in its most recent earnings report. Dillard's reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Dillard's Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$4.54B9.0343.30%9.34%10.61%
77
Outperform
$1.86B9.045.36%7.53%-7.23%-27.81%
77
Outperform
$6.34B13.8419.72%9.63%56.06%
77
Outperform
$9.01B15.9129.76%4.49%-2.44%-10.74%
75
Outperform
$8.83B10.2328.07%2.61%-0.05%15.17%
62
Neutral
$4.71B9.8711.31%4.17%-3.43%169.28%
61
Neutral
$17.92B12.81-2.97%2.98%1.30%-14.28%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DDS
Dillard's
578.49
252.18
77.28%
ANF
Abercrombie Fitch
95.39
-37.87
-28.42%
GAP
Gap Inc
24.14
5.00
26.12%
KSS
Kohl's
16.59
-1.62
-8.90%
M
Macy's
17.09
3.31
24.02%
URBN
Urban Outfitters
73.01
37.55
105.89%

Dillard's Corporate Events

Shareholder MeetingsBusiness Operations and Strategy
Dillard’s Reincorporation to Texas Approved by Shareholders
Neutral
Aug 20, 2025

On August 19, 2025, Dillard’s stockholders approved the company’s reincorporation from Delaware to Texas. This decision, made during a special meeting, involved a significant majority vote, indicating strong shareholder support for the move.

Regulatory Filings and Compliance
Dillard’s Eliminates Series A Preferred Stock Designation
Neutral
Jul 21, 2025

On July 18, 2025, Dillard’s, Inc. filed a Certificate of Elimination with the Secretary of State of Delaware to eliminate the Certificate of Designations related to its Series A Junior Participating Preferred Stock. This stock was reserved for a shareholder rights plan that expired in 2012, and no shares were issued. The elimination allows these shares to revert to undesignated status, impacting the company’s stock structure.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025