Destination XL Group, headquartered in Canton, Massachusetts, operates 232 DXL and 36 Casual Male XL retail and outlet stores, employing 1,439 staff to provide specialty apparel in large sizes. The company also features a digital business offering a variety of merchandise and footwear from sizes 10W to 18W.
Based on our analysis, Destination XL Group (DXLG) has received an undervalued rating of 4 out of 5 stars from Cashu. This rating is supported by several key financial ratios that highlight the company's strong performance relative to its sector.
The price-to-earnings (P/E) ratio for Destination XL is 15.27, compared to the sector average of 16.66. A lower P/E ratio suggests that the stock may be undervalued relative to its earnings potential. Additionally, the price-to-book (P/B) ratio stands at 1.58, significantly lower than the sector average of 2.06. This indicates that the stock may be trading at a better value compared to its book value.
Destination XL also boasts a net profit margin of 5.34, well above the sector average of 0.13. This strong margin reflects the company's efficient management and ability to generate profit from its revenues. Furthermore, the return on equity (ROE) for Destination XL is 18.70, which far exceeds the sector's average of 1.68. A high ROE signals effective use of shareholder equity to generate profits.
Lastly, the return on assets (ROA) ratio is 7.79, compared to the sector's -0.09. This positive ROA indicates that the company is effectively utilizing its assets to produce earnings.
Overall, these financial metrics suggest that Destination XL Group is undervalued in the market, presenting a potential opportunity for investors.
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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