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DBI vs GCO

DBI
Designer Brands Inc.
BEARISH
Price
$8.11
Market Cap
$411.2M
Sector
Consumer Cyclical
AI Confidence
85%
GCO
Genesco Inc.
NEUTRAL
Price
$35.15
Market Cap
$381.7M
Sector
Consumer Cyclical
AI Confidence
75%

Valuation

P/E Ratio
DBI
--
GCO
28.12
Forward P/E
DBI
15.72
GCO
12.83
P/B Ratio
DBI
1.43
GCO
0.67
P/S Ratio
DBI
0.14
GCO
0.16
EV/EBITDA
DBI
14.57
GCO
10.22

Profitability

Gross Margin
DBI
43.57%
GCO
46.26%
Operating Margin
DBI
-2.05%
GCO
6.97%
Profit Margin
DBI
-0.29%
GCO
0.55%
ROE
DBI
-1.96%
GCO
2.38%
ROA
DBI
1.61%
GCO
1.14%

Growth

Revenue Growth
DBI
0.0%
GCO
7.2%
Earnings Growth
DBI
--
GCO
41.6%

Financial Health

Debt/Equity
DBI
4.3
GCO
0.92
Current Ratio
DBI
1.2
GCO
1.64
Quick Ratio
DBI
0.19
GCO
0.39

Dividends

Dividend Yield
DBI
2.47%
GCO
--
Payout Ratio
DBI
500.0%
GCO
0.0%

AI Verdict

DBI BEARISH

DBI exhibits severe fundamental weakness, highlighted by a Piotroski F-Score of 2/9, indicating poor financial health and operational deterioration. While the stock has seen a massive 1-year price surge of 203.8%, this rally is decoupled from fundamentals: revenue growth is stagnant at 0.00%, and the company is operating with negative profit and operating margins. A critical Debt/Equity ratio of 4.30 and a dangerously low Quick Ratio of 0.19 suggest significant liquidity risks. Furthermore, the dividend is unsustainable with a 500% payout ratio, effectively acting as a return of capital rather than a return on earnings.

Strengths
Extremely low Price-to-Sales ratio (0.14)
Strong Gross Margin (43.57%)
Recent positive earnings surprises in the last 4 quarters
Risks
Critical financial health (Piotroski F-Score 2/9)
Excessive leverage with Debt/Equity at 4.30
Severe liquidity risk indicated by Quick Ratio of 0.19
GCO NEUTRAL

GCO presents a complex profile with a stable Piotroski F-Score of 4/9 and a valuation that sits below both its Graham Number ($38.42) and Intrinsic Value ($36.88). While the company shows impressive earnings growth (41.6% YoY) and an attractive PEG ratio of 0.68, these are offset by razor-thin net profit margins of 0.55% and a very low quick ratio of 0.39. The stock is fundamentally undervalued relative to book value (P/B 0.67), but the lack of operational efficiency and a bearish technical trend score suggest caution.

Strengths
Significant undervaluation relative to book value (P/B 0.67)
Strong PEG ratio (0.68) indicating growth is underpriced
Price is currently trading below the Graham Number and Intrinsic Value
Risks
Extremely thin net profit margins (0.55%) leave no room for error
Poor quick ratio (0.39) indicates heavy reliance on inventory liquidation
Very low Return on Equity (2.38%) and Return on Assets (1.14%)

Compare Another Pair

DBI vs GCO: Head-to-Head Comparison

This page compares Designer Brands Inc. (DBI) and Genesco Inc. (GCO) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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