Designer Brands Inc. cash flow to debt ratio of 9.10% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Designer Brands Inc.'s free cash flow has increased 29.04% from $87.27M last year to $112.62M, signaling increasing performance

Designer Brands Inc.'s debt to equity ratio is 4.37, which means that the company's assets are unhealthy financed, signaling financial risk.

Designer Brands Inc.'s debt has decreased relative to shareholder equity from 4.62 last year to 4.37 today, signaling strengthened financials

Designer Brands Inc. has a net debt to EBITDA ratio of 10.84x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Designer Brands Inc.'s interest coverage ratio is 1.64, which means that the company struggles to meet interest obligations, signaling financial risk.

Designer Brands Inc.'s profit margin has increased (-200.36%) in the last year from -0.35% to 0.35%, signaling increasing performance

Designer Brands Inc.'s short-term assets of $708.15M exceed its short-term liabilities of $588.47M

Designer Brands Inc.'s return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization

Designer Brands Inc.'s return on equity of 3.57%, is lower than 15.00%, indicating bad performance

Designer Brands Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Designer Brands Inc. had positive net income in 3 out of 5 years, indicating stable and consistent earnings

Designer Brands Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Designer Brands Inc. has a free cash flow yield of 33.76%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Designer Brands Inc.'s yearly earnings has increased -20.62% since last year from $-10.55M to $-8.37M, signaling increasing performance

Designer Brands Inc.'s yearly revenue has decreased 3.87% since last year from $3.01B to $2.89B, signaling decreasing performance

ROIC 4.58% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Designer Brands Inc.'s 3-year revenue CAGR of -4.45% is negative, indicating declining revenue over the past 3 years

Designer Brands Inc. had revenue growth in only 2 out of 5 years, indicating inconsistent revenue performance

Designer Brands Inc. had positive ROE in 3 out of 5 years, indicating consistent and reliable returns on equity

Designer Brands Inc. has insufficient data to evaluate this check.

Designer Brands Inc. has an earnings yield of 2.78%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Designer Brands Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Designer Brands Inc. has an EV/EBITDA ratio of 13.97x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Designer Brands Inc. is undervalued relative to its fair value price of 22.66 based on Earnings Fair Value model

Designer Brands Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Designer Brands Inc. has a price-to-book ratio of 1.29x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Designer Brands Inc. has a price-to-sales ratio of 0.13x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue