Skip to main
Todd Carlisle
Alright y'all due to popular demand let's talk Due Dillardsance. @buildingbread had a post earlier in the week pointing out how insane of a run $DDS has been on. Members of the discord channel (link at the end) can tell you I've been screaming about Dillard's for the better part of this year. Why? I mean they've been on a 600% bender so they're definitely run out right? Well let me run down some of the figures for you and you tell me. Hopefully by the end you realize that omitting stocks just because they've had significant gains is a great way to lose out on significant gains. For exhibit A I'd like to point you to some of the easiest to see metrics. On EPS, Q1 saw a 430% beat, while Q2 saw a 260% beat. Q3 Dillard’s posted a whopping 408% beat on the bottom line. Revenues also surged, as the company saw $1.48B v 1.02B last year. Same store sales were up 48% and their retail gross margin came in at 46.7% vs 36.6% last year. Yes you read that correctly. They boosted their gross margin over 10%. Dillard’s hasn’t missed on earnings since early 2020, making the Q3 beat the sixth straight. The company is on track to post full-year EPS well above $30. That means Dillard's stock trades for just 10 times its likely current-year earnings. Well they're overextend right? Let's look at their metrics compared with the industry as a whole. P/E Ratio TTM 12.71 P/B Ratio 5.71 P/S Ratio 1.86 PEG ratio 0.79 Macy's $M P/E Ratio TTM 9.02 P/B Ratio 3.456 P/S Ratio 0.609 PEG Ratio 0.76 Kohl's $KSS P/E Ratio TTM 12.28 P/B Ratio 1.689 P/S Ratio 0.5598 PEG Ratio 1.08 In fact for the retail sector the historical P/E ratio is 22. If you're familiar with the PEG ratio it takes P/E and factors in future growth with 1 being fair value, below 1 increasingly undervalued and above 1 increasingly overvalued. Unlike P/E which varies from industry to industry the PEG ratio is consistent. With Dillard's sporting a 0.79 PEG it indicates they are actually still undervalued. I've posted before about the affect of share buybacks on stock prices and this one is no exception. In the nine months ended Oct 30, 2021, the company bought back 2.6 million shares worth $410.3 million, while it repurchased 1.2 million shares worth $239.2 million in the fiscal third quarter under its March 2018 and May 2021 share repurchase program. With this, Dillard's completed all share repurchases under its earlier share repurchase plan announced in March 2018. As of Oct 30, it had $262.9 million authorization left under its May 2021 plan. At current prices this is over 700k shares left to be purchased. The company also just declared a special dividend of $15 per share . The special dividend is payable December 15, 2021, to shareholders of record as of November 29, 2021. Keep in mind t+2 settlement means you would actually have to purchase two sessions before. I even took it to Glassdoor to see what employees of the company were saying. Almost without exception they cited great compensation, challenging goals, and excellent management. With all reviews you get your standard complaints but the stuff that was company specific was glowing. So what do you get when you have solid fundamentals, excellent management, and over $200 million to buy back shares? I'm betting the answer is significant future gains. Next time before dismissing a stock simply because it's done well, take the time to look into WHY it's done well. If those conditions haven't changed ask yourself, why wouldn't it continue to do well? #tcardizzle #duediligence Want to get cued in on stocks like this way before everyone starts talking about it? Join us
Own your future.
Build your portfolio.

All of your investing.
All in one place.

Invest in stocks, treasuries, ETFs, crypto, and alternative assets on Public. Transfer your account to Public and get up to $10,000.
Sign Up
Contact Us
Check the background of this firm on FINRA’s BrokerCheck.

© Copyright 2023 Public Holdings, Inc. All Rights Reserved.

Market data powered by Xignite.

All investments involve the risk of loss and the past performance of a security or a financial product does not guarantee future results or returns. You should consult your legal, tax, or financial advisors before making any financial decisions. This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy.

Product offerings and availability vary based on jurisdiction.

Stocks and ETFs.
Brokerage services for US-listed, registered securities are offered to self-directed customers by Open to the Public Investing, Inc. (“Open to the Public Investing”), a registered broker-dealer and member of FINRA & SIPC. Additional information about your broker can be found by clicking here. Open to Public Investing is a wholly-owned subsidiary of Public Holdings, Inc. (“Public Holdings”). This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Open to the Public Investing is not registered. Securities products offered by Open to the Public Investing are not FDIC insured. Apex Clearing Corporation, our clearing firm, has additional insurance coverage in excess of the regular SIPC limits. Additional information can be found here.

Alternative Assets.
Brokerage services for alternative assets available on Public are offered by Dalmore Group, LLC (“Dalmore”), member of FINRA & SIPC. “Alternative assets,” as the term is used at Public, are equity securities that have been issued pursuant to Regulation A of the Securities Act of 1933 (as amended) (“Regulation A”). This content is not investment advice. These investments are speculative, involve substantial risks (including illiquidity and loss of principal), and are not FDIC or SIPC insured. Alternative Assets purchased on the Public platform are not held in an Open to the Public Investing brokerage account and are self-custodied by the purchaser. The issuers of these securities may be an affiliate of Public, and Public (or an affiliate) may earn fees when you purchase or sell Alternative Assets. For more information on risks and conflicts of interest, see these disclosures. An affiliate of Public may be “testing the waters” and considering making an offering of securities under Tier 2 of Regulation A. No money or other consideration is being solicited and, if sent in response, will not be accepted. No offer to buy securities can be accepted, and no part of the purchase price can be received, until an offering statement filed with the SEC has been qualified by the SEC. Any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of acceptance given after the date of qualification by the SEC or as stated in the offering materials relating to an investment opportunity, as applicable. An indication of interest to purchase securities involves no obligation or commitment of any kind.

Cryptocurrency execution and custody services are provided by Bakkt Crypto Solutions LLC (NMLS ID 1828849) through a software licensing agreement between Bakkt Crypto Solutions LLC and Public Platform LLC. Bakkt Crypto is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not securities and are not FDIC or SIPC insured. Bakkt Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Please ensure that you fully understand the risks involved before trading: Bakkt Crypto Disclosures.

U.S. Treasuries (“T-Bill“) investing services on the Public Platform are offered by Jiko Securities, Inc. (“JSI”), a registered broker-dealer and member of FINRA & SIPC. See JSI’s FINRA BrokerCheck and Form CRS for further information. When you enable T-Bill investing on the Public platform, you open a separate brokerage account with JSI (the “Treasury Account“).

JSI uses funds from your Treasury Account to purchase T-bills in increments of $100 “par value” (the T-bill’s value at maturity). T-bills are purchased at a discount to the par value and the T-bill’s yield represents the difference in price between the “par value” and the “discount price.” Aggregate funds in your Treasury Account in excess of the T-bill purchases will remain in your Treasury Account as cash. The value of T-bills fluctuate and investors may receive more or less than their original investments if sold prior to maturity. T-bills are subject to price change and availability - yield is subject to change. Past performance is not indicative of future performance. Investments in T-bills involve a variety of risks, including credit risk, interest rate risk, and liquidity risk. As a general rule, the price of a T-bills moves inversely to changes in interest rates. See Jiko U.S. Treasuries Risk Disclosures for further details.

Investments in T-bills: Not FDIC Insured; No Bank Guarantee; May Lose Value.

Banking services and bank accounts are offered by Jiko Bank, a division of Mid-Central National Bank, Member FDIC.

JSI and Jiko Bank are not affiliated with Public Holdings, Inc. (“Public”) or any of its subsidiaries. None of these entities provide legal, tax, or accounting advice. You should consult your legal, tax, or financial advisors before making any financial decisions. This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy.

Commission-free trading of stocks and ETFs refers to $0 commissions for Open to the Public Investing self-directed individual cash brokerage accounts that trade the U.S.-listed, registered securities electronically during the Regular Trading Hours. Keep in mind that other fees such as regulatory fees, Premium subscription fees, commissions on trades during extended trading hours, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Open to the Public Investing’s Fee Schedule to learn more.

Fractional shares are illiquid outside of Public and not transferable. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see our Fractional Share Disclosure to learn more.