One-glance verdict
Undervalued
$1,251.65 our estimate vs market $656.60
Wall Street consensus: $545.67 (-56.4% lower than our fair-value estimate)
48% below our estimate, below the bear case
Fundamentals snapshot
Dillard's, Inc.
DDS · TEX · Consumer Cyclical · Department Stores
Current price
$656.60
52-week range
$503.06 - $741.98
Market cap
$10.26B
Balance sheet
Healthy
16.78x Strong cushion
Net cash $803.94M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 0.5% last year.
- Reward Returns 33.8% on equity, ahead of 40% of its peers.
- Risk Forward P/E (19.0x) is higher than trailing (15.0x) - earnings are expected to drop.
- Risk Stock trades 31.4% above its 5-year average P/E.
What this company does
Dillard's, Inc.
Dillard's is a department store chain, mostly in the southern and midwestern US, selling clothes, makeup, and home goods both in its physical stores and online. The company's profits mainly come from selling these items, and how much money is left after covering the costs of selling them (this is called the operating margin) is important for understanding how well the business is doing. They also do some store construction, but that's a smaller part of their business.
How the company got here
Dillard's began in 1938 with a single store in Nashville, Arkansas, founded by William Dillard. He started with a borrowed $8,000 and a vision for offering national brand merchandise at attractive prices, coupled with customer credit. The company grew steadily, expanding through acquisitions of other department stores and establishing itself as an anchor in suburban shopping malls throughout the 1970s and 1980s. Dillard's went public in 1969, allowing for further expansion and investment. The company has since evolved, embracing e-commerce and an omnichannel approach to create a seamless shopping experience across both digital and physical stores, while maintaining a focus on curated, higher-quality brands.
What it actually does
Dillard's operates as a retail department store chain, offering a wide array of products for men, women, and children. This includes fashion apparel, shoes, cosmetics, accessories, and home furnishings. They sell these items through their physical stores, which are primarily located in shopping malls across the U.S., and also through their online store, dillards.com. Dillard's also operates clearance centers to sell off merchandise from prior seasons at reduced prices.
Retail Operations
This is the main way Dillard's makes money, accounting for the vast majority of its revenue. Through its retail operations, the company sells a broad selection of merchandise. This includes fashion apparel for women, men, and children, as well as shoes, accessories like handbags and jewelry, and home furnishings such as bedding and decor. They also sell cosmetics and fragrances. Dillard's offers a mix of well-known national brands and its own private-label brands, aiming to provide a differentiated assortment to its customers.
Construction
Dillard's also has a smaller business segment focused on construction. This segment primarily handles general contracting and construction activities, such as building and remodeling stores for Dillard's itself. While not as significant financially as the retail operations, this in-house capability provides Dillard's with more control over its store development and maintenance.
What management is betting on now
Dillard's management is focused on a strategy that emphasizes profitability and disciplined operations rather than aggressive growth. Key priorities include maintaining strong control over inventory and managing markdowns effectively to protect merchandise margins. They are also selectively investing in their store base, both by opening new locations and remodeling existing ones, to enhance the overall shopping experience. Furthermore, Dillard's is strengthening its online presence and integrating it with its physical stores to create a seamless omnichannel experience for customers.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q4
$145.42M
FY2026 Q1
$349.29M
FY2026 Q2
$215.78M
FY2026 Q3
$60.09M
FY2026 Q4
$156.15M
FY2027 Q2
$346.77M
FY2027 Q3
$-59.45M
Revenue
$1.53B
Net income
$97.69M
Diluted EPS
6.25
Operating cash flow
$-37.18M
Free cash flow
$-59.45M
Fetching…
Sources
Revenue
$1.59B
Net income
$250.55M
Diluted EPS
16.04
Operating cash flow
$363.98M
Free cash flow
$346.77M
Fetching…
Sources
Revenue
$1.49B
Net income
$129.81M
Diluted EPS
8.31
Operating cash flow
$186.46M
Free cash flow
$156.15M
Fetching…
Sources
Revenue
$1.54B
Net income
$72.83M
Diluted EPS
4.66
Operating cash flow
$86.76M
Free cash flow
$60.09M
Fetching…
Sources
Revenue
$1.55B
Net income
$163.82M
Diluted EPS
10.39
Operating cash flow
$232.63M
Free cash flow
$215.78M
Fetching…
Sources
Revenue
$2.05B
Net income
$214.36M
Diluted EPS
13.41
Operating cash flow
$364.69M
Free cash flow
$349.29M
Fetching…
Sources
Revenue
$1.45B
Net income
$124.60M
Diluted EPS
7.73
Operating cash flow
$173.48M
Free cash flow
$145.42M
Fetching…
Sources
Is it cheap or expensive?
Fair value $1,251.65 vs current price $656.60
Wall Street consensus is the average analyst price target: $545.67 (-56.4% lower than our fair-value estimate).
Our most-likely fair value is $1,251.65 a share — about 90.6% above today's price of $656.60, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $803.9M - more cash than debt. Interest coverage 16.8x.
Net debt
$-803.94M
Interest coverage
16.78x
Dillard's, Inc.'s profit covers its interest bill about 16.8 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
DDS
BASELINE
Dillard's, Inc.
Total debt $456.84M Interest coverage 16.78x This is the baseline the peer rows are being compared against.
Total debt $5.09B Interest coverage 9.11x -46% vs DDS Carries about 1.8x less debt cushion than DDS.
Total debt $6.42B Interest coverage 1.77x -89% vs DDS Carries about 9.5x less debt cushion than DDS.
Total debt $5.91B Interest coverage 11.89x -29% vs DDS Carries about 1.4x less debt cushion than DDS.
Total debt $14.32B Interest coverage 97.00x +478% vs DDS Carries about 5.8x more debt cushion than DDS.
What you should know
The case for and against DDS
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.5% last year.
-
Returns 33.8% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Forward P/E (19.0x) is higher than trailing (15.0x) - earnings are expected to drop.
-
Stock trades 31.4% above its 5-year average P/E.
-
Operating margin compressed from 16.1% to 5.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
15.05x
Forward P/E
19.03x
P/B
4.84x
P/S
1.55x
EV/EBITDA
11.23x
PEG ratio
2.24x
Profitability
How much profit each dollar creates
Gross margin
40.6%
Operating margin
5.7%
Net margin
10.3%
ROE
33.8%
ROA
11.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.22x
Current ratio
3.03x
Quick ratio
1.49x
Total debt
$456.84M
Total cash
$1.26B
Growth
How the business has been compounding
Revenue TTM
$6.60B
Revenue 5Y CAGR
-0.2%
EPS TTM
43.64
EPS 5Y CAGR
-10.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$724.41M
Free CF TTM
$623.63M
FCF margin
9.4%
Dividend
Shareholder payout
Yield
0.2%
Payout ratio
2.8%
Last ex-div date
2026-09-30