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 presents a compelling case for being undervalued, earning a rating of 4 out of 5 stars from Cashu. Several key financial ratios indicate that the company is performing well compared to its sector peers, yet its valuation remains attractive.
The Price-to-Earnings (PE) Ratio of 15.61 is lower than the sector average of 16.61. A lower PE ratio suggests that investors are paying less for each dollar of earnings, indicating that the stock may be undervalued relative to its earnings potential. Additionally, the Price-to-Book (PB) Ratio stands at 1.58, compared to the sector average of 2.10. This lower PB ratio indicates that the company's market price is less than its book value, further suggesting undervaluation.
Destination XL Group boasts a strong Net Profit Margin of 5.34, significantly outperforming the sector's mere 0.13. This indicates effective cost management and profitability, which can enhance investor confidence. Furthermore, the company's Return on Equity (ROE) is notably high at 18.70, compared to the sector average of 1.68. A higher ROE reflects efficient use of equity investments to generate profits, which is a positive indicator for investors.
Lastly, the Return on Assets (ROA) stands at 7.79, whereas the sector average is negative at -0.09. This indicates that Destination XL Group is managing its assets efficiently to generate earnings.
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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