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ZYBERNO

Stock Report

Updated Aug 21, 2026

DULUTH HOLDINGS INC. (DLTH)

NASDAQ

$3.76

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

22.0/100

POOR BUSINESS

DULUTH HOLDINGS INC. (DLTH) scores 22/100 — concerning metrics indicating significant structural or financial risks.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full DLTH quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

+90.9%

Undervalued

Growth gap unavailable — insufficient data for reverse DCF calculation.

⚠ Significant divergence between Owner Earnings and Free Cash Flow (1.79×). Intrinsic Value and Brina Gap are likely overstated — acquisition-related D&A is inflating Owner Earnings. Verify earnings quality before acting.

🎯 Expected Annual Return →

91.8%

Margin of Safety convergence — your return if the market re-prices to intrinsic value (5-yr annualised)

26.0%

Yield + growth — what the business alone earns you, even if the market never re-rates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full DLTH valuation analysis · → View full DLTH Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-21.2%)

Debt-to-Equity (Solvency Risk):POOR (1.32x)

Operating Margin (Operational Efficiency):CRITICAL (-6.3%)

Return on Capital (Capital Efficiency):CRITICAL (-8.8%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

DULUTH HOLDINGS INC. (DLTH) stock report — Zyberno Score 22/100 (POOR BUSINESS), Margin of Safety +90.9%, 92% expected annual return. Full financial analysis on Zyberno.

According to Zyberno's DCF model, DULUTH HOLDINGS INC. (DLTH) trades at $3.76 against an estimated intrinsic value per share of $41.39 — a +90.9% Margin of Safety based on Owner Earnings of $46.17M TTM, projected at 40.9% growth for 10 years with a 2.5% terminal growth rate. Zyberno's model translates this into a 5-year expected return of 91.8% annually.

Over the trailing twelve months, DLTH generated $46.17M in Owner Earnings. Reinvestment rate: 85.1%. Owner Earnings have grown at 40.9% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:3.76

Market Cap:$130.52M

Valuation Multiples (3)

P/B Ratio:0.83x

P/S Ratio:0.29x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$212.96M

Pfcf Ratio:8.32x

Price Action & Momentum (3)

12-1 Momentum:

+104.8% (93th pctile)

📈 Click to view full DLTH Momentum analysis →

Momentum Percentile:93 / 100

% of 52-Week High:73.9%

B. Profitability Assessment

Return Metrics (5)

ROE:

-21.2%

📊 Click to view full DLTH ROE analysis →

ROA:-7.8%

Roic:

-8.8%

📊 Click to view full DLTH ROIC analysis →

Reinvestment Rate:85.1%

Fundamental Growth Rate (g):-7.5%

Margin Analysis (3)

Operating Margin Ttm:-6.3%

Net Margin Ttm:-7.6%

Ebitda Margin:-0.6%

TTM Performance (3)

Gross Margin Ttm:54.4%

Operating Margin Ttm:-6.3%

Net Margin Ttm:-7.6%

Yield Metrics (3)

Earnings Yield:-$24.94

Owner Earnings Yield:$33.50

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.49

📊 Click to view full DLTH Earnings Surprise analysis →

EPS Surprise vs Expected:39.3%

Latest Earnings Filed:2026-06-09

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-7.7%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):-38.9%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):26.1%

Operating Cash Flow Growth Rate (Linear):39.5%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):-37.8%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:1.62x

Quick Ratio:0.30x

Cash Ratio:0.06x

Leverage Analysis (3)

Debt To Equity Ttm:1.32x

Debt-to-Equity Ratio:1.32x

Debt To Ebitda:-999.00x

Coverage Ratios (2)

Interest Coverage Ratio:-2.04x

Times Interest Earned:-2.04

Capital Structure (4)

Working Capital:62,297,000.00

Cash And Cash Equivalents:6,134,000.00

Long Term Debt:$72.02M

Net Debt:$82.44M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $447.89M

Linear Growth: -7.7%

📊 Click to view full DLTH Revenue analysis & methodology →

Cost Of Revenue Ttm:$204.03M

Profitability Breakdown (2)

Gross profit TTM: $243.85M

Linear Growth: -8.7%

📊 Click to view full DLTH Gross Profit analysis & methodology →

Operating income TTM: -$28.02M

Linear Growth: -37.8%

📊 Click to view full DLTH Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: -$34.23M

Linear Growth: -38.9%

📊 Click to view full DLTH Net Income analysis & methodology →

Income Before Tax:-$33.07M

Ebitda Ttm:-2,544,000.00

Operating Expenses (5)

Operating Expenses:0.00

R And D Expense:0.00

Sga Expense:266,956,000.00

Income Tax Expense:$948.00K

Interest Expense:4,971,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:270.8%

Ebitda Margin:-0.6%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$380.65M

Current Assets:$163.06M

Ppe Net:91,909,000.00

Goodwill:402,000.00

Intangible Assets:$393.00K

Liability Structure (4)

Total Liabilities:224,080,000.00

Current Liabilities:100,767,000.00

Long Term Debt:$72.02M

Short Term Debt:$16.56M

Equity & Capital (3)

Equity:$156.57M

Retained Earnings:$51.23M

Common Stock:0.00

Working Capital Items (3)

Accounts Receivable:1,754,000.00

Inventory:132,444,000.00

Accounts Payable:0.00

Special Items (2)

Contract Liabilities:7,883,000.00

Stock Based Compensation:709,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $24.17M

Linear Growth: 39.5%

Free cash flow TTM: $16.57M

Linear Growth: 26.1%

📊 Click to view full DLTH Free Cash Flow analysis & methodology →

Investment Activities (1)

Investing Cash Flow:-$1.72M

Financing Activities (3)

Financing Cash Flow:$4.93M

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$246.00K

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-0.99

Eps diluted TTM: -$0.99

Linear Growth: -38.4%

📊 Click to view full DLTH EPS analysis & methodology →

Earnings Per Share Ttm:-$0.99

Revenue & Cash Per Share (2)

Sales Per Share Ttm:12.90

Operating Cash Flow Per Share:$0.70

Book Value & Capital (2)

Book Value Per Share:$4.51

Cash Per Share:0.18

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:1.03x

Working Capital Turnover Ttm:7.19x

Receivables Management (2)

Receivables Turnover Ttm:255.35x

Days Sales Outstanding Ttm:1.43

Inventory Management (2)

Inventory Turnover Ttm:1.54x

Days Inventory Outstanding Ttm:236.93

Payables & Cash Cycle (2)

Days Payable Outstanding:-999.00

Cash Conversion Cycle:1,237.36

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:80.00

Quality Score:45.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $46.17M

Linear Growth: 40.9%

📊 Click to view full DLTH Owner Earnings analysis & methodology →

Owner Earnings Per Share:$1.33

Owner Earnings Yield:$33.50

Growth Assessment (1)

Owner Earnings Growth Rate:$40.92

Damodaran Growth Analysis (2)

Reinvestment Rate:85.1%

Fundamental Growth Rate (g):-7.5%

Intrinsic Value Models (1)

Intrinsic Value:

$1.44B

📊 Click to view full DLTH DCF valuation →

Margin of Safety (1)

Margin Of Safety:

90.9%

📊 Click to view full DLTH valuation analysis →

Return Scenarios (2)

Theoretical 5-Year Return:

91.8%

📊 Click to view full DLTH expected return analysis →

Forward Expected Return (Yield + Growth):

26.0%

📊 Click to view full DLTH expected return analysis →

Investment Assessment (1)

Buffett Assessment:Excellent margin of safety

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):-7.7%

Net Income Growth Rate (Linear):-38.9%

Operating Income Growth Rate (Linear):-37.8%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):26.1%

Operating Cash Flow Growth Rate (Linear):39.5%

Other Growth Rates (3)

Gross Profit Growth Rate (Linear):-8.7%

Book Value Growth Rate (Linear):-4.1%

Owner Earnings Growth Rate:$40.92

C. Company Profile & Context

Corporate Information (6)

Symbol:DLTH

Company Name:DULUTH HOLDINGS INC.

Sector:Unknown

Industry:Apparel Retail

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:34.71M

Shares Outstanding Basic:34.71M

Shares Outstanding Diluted:34.71M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-21 18:11:27 UTC

Data Timestamp:2026-08-19T01:19:46.909794