Duluth Holdings, headquartered in Mount Horeb, Wisconsin, offers a lifestyle brand of casual and work wear, employing 950 people and operating 62 retail stores. The company went public on November 20, 2015, featuring proprietary products like Longtail T-shirts and Buck Naked underwear.
Based on our analysis, Duluth Holdings has been rated as undervalued with a 5 out of 5 stars by Cashu. Several key financial ratios indicate that the company is trading at a significant discount compared to its sector peers.
The price-to-book (PB) ratio for Duluth Holdings stands at 0.76, while the sector average is 2.04. A lower PB ratio suggests that the company's stock may be undervalued relative to its net assets, indicating potential for price appreciation as the market recognizes its intrinsic value.
Duluth's net profit margin is currently at -1.45%, contrasting with a sector average of 0.25%. Although this negative margin reflects operational challenges, it also highlights the potential for turnaround, as improvements in efficiency could lead to profitability, thereby enhancing shareholder value.
The return on equity (ROE) is -4.15% compared to the sector average of 1.98%. A negative ROE indicates that the company is currently not generating returns for its shareholders; however, this also indicates room for recovery and improved performance in the future.
Additionally, Duluth's dividend yield is at 0.18%, significantly lower than the sector average of 1.48%. While the current yield is modest, it suggests that the company is retaining earnings to reinvest in growth initiatives rather than distributing them as dividends.
Lastly, the return on assets (ROA) ratio is -1.91%, while the sector average is 0.12%. This negative ROA indicates inefficiencies in asset utilization, but also suggests potential for operational improvements that could enhance financial performance.
This is not a comprehensive overview of our valuation and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Consumer Discretionary
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