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DBI vs ZUMZ

DBI
Designer Brands Inc.
BEARISH
Price
$8.11
Market Cap
$411.2M
Sector
Consumer Cyclical
AI Confidence
85%
ZUMZ
Zumiez Inc.
NEUTRAL
Price
$24.64
Market Cap
$418.1M
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
DBI
--
ZUMZ
31.59
Forward P/E
DBI
15.72
ZUMZ
15.95
P/B Ratio
DBI
1.43
ZUMZ
1.16
P/S Ratio
DBI
0.14
ZUMZ
0.45
EV/EBITDA
DBI
14.57
ZUMZ
10.49

Profitability

Gross Margin
DBI
43.57%
ZUMZ
35.85%
Operating Margin
DBI
-2.05%
ZUMZ
9.04%
Profit Margin
DBI
-0.29%
ZUMZ
1.44%
ROE
DBI
-1.96%
ZUMZ
4.09%
ROA
DBI
1.61%
ZUMZ
2.19%

Growth

Revenue Growth
DBI
0.0%
ZUMZ
4.4%
Earnings Growth
DBI
--
ZUMZ
49.1%

Financial Health

Debt/Equity
DBI
4.3
ZUMZ
0.61
Current Ratio
DBI
1.2
ZUMZ
2.01
Quick Ratio
DBI
0.19
ZUMZ
1.04

Dividends

Dividend Yield
DBI
2.47%
ZUMZ
--
Payout Ratio
DBI
500.0%
ZUMZ
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
ZUMZ NEUTRAL

ZUMZ exhibits strong financial health with a Piotroski F-Score of 7/9, indicating a robust operational recovery. While earnings growth is impressive at 49.1% YoY and the PEG ratio of 0.96 suggests reasonable valuation relative to growth, the current price of $24.64 trades at a premium to both the Graham Number ($19.3) and the Intrinsic Value ($23.01). The outlook is tempered by extremely thin net profit margins (1.44%) and a bearish insider sentiment characterized by consistent selling.

Strengths
Strong Piotroski F-Score (7/9) indicating improving financial health
Significant earnings growth (49.1% YoY) and consistent EPS beats
Attractive PEG ratio (0.96) suggesting growth is not fully priced in
Risks
Critically thin net profit margins (1.44%) leaving little room for error
Bearish insider activity with 7 sell transactions and 0 buys
Sluggish revenue growth (4.4% YoY) compared to sector averages

Compare Another Pair

DBI vs ZUMZ: Head-to-Head Comparison

This page compares Designer Brands Inc. (DBI) and Zumiez Inc. (ZUMZ) 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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