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 is currently rated as undervalued (5 out of 5 stars) due to several key financial metrics that indicate potential for improvement and growth. The company's price-to-book (PB) ratio stands at 0.55, significantly lower than the sector average of 1.98. A low PB ratio suggests that the stock may be undervalued relative to its assets, indicating that investors could acquire shares at a bargain compared to the company's net asset value.
In addition, Duluth Holdings has a net profit margin of -6.97%, which, while negative, is in stark contrast to the sector's -0.14%. This indicates that the company is currently facing challenges in profitability, but it also highlights the potential for turnaround as operational efficiencies could improve margins in the future.
The return on equity (ROE) ratio for Duluth Holdings is -23.91%, compared to the sector's positive 0.26%. While this negative figure reflects challenges in generating profit from shareholder equity, it also suggests significant room for improvement. If the company can stabilize and return to profitability, the upside could be substantial.
Lastly, the return on assets (ROA) ratio is at -9.65%, again worse than the sector’s -0.52%. This indicates that Duluth Holdings is not effectively utilizing its assets to generate earnings, but it presents an opportunity for operational enhancement.
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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