Player Avatar elcid24 (70.28) Submitted: 1/8/2014 11:41:49 AM : Outperform Start Price: $92.97 DDS Score: +16.86

The average number of diluted shares has dropped from 74M to 45M over the past 4 years. During that same time the total debt held by the company has dropped by about $150M. Most companies are taking on debt to fuel buybacks - these guys are repurchasing shares with operating earnings.Dillard's ROA (8%) is higher than Macy's, Target, and Kohl's, and is nearly as high as Nordstrom. The company has been strategically closing lower-performing stores over the past several years, yet has still found a way to increase revenues. They also own the vast majority of the stores they operate. So closing lower-performing stores not only increases performance, it also yields nice little earnings bumps along the way.Even though I'm green-thumbing this company at a "peak" (stock price and operating income are both near all-time highs), I think a PE of 12 for this company represents a good entry point. Being a southern-based retailer, they don't feel the adverse impacts of poor weather (as much).

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