MeritValue

DESTINATION XL GROUP, INC.

DXLGdata completeness 88%17 fiscal years on file
The thesis, from the filings

DESTINATION XL GROUP, INC. earns about 41% on invested capital, far above its ~9% cost of capital, and has bought back 20% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $0.89 and $5.33 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$505M1$545.8M2$521.8M3$467M3$435M3
Net income$56.7M4$89.1M4$27.9M4$3.06M4−$35.9M4
Operating cash flow$75.5M5$59.9M6$49.6M7$29.6M7$2.07M7
Capital expenditure$5.27M8$9.64M9$17.4M10$27.7M10$20.1M10
Free cash flow (derived)$70.3M5$50.3M6$32.2M7$1.86M7−$18M7
Total debt—————
Cash & equivalents$15.5M11$52.1M12$27.6M13$11.9M14$23.8M14
Diluted shares68.0M66.9M64.3M59.6M54.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$19.98
your share of equity
Profit it earned you last year
−$6.64
Free cash flow it threw off
−$3.33
Debt you’d be carrying
—

10 shares is a claim on $19.98 of net worth that earned you −$6.64 and generated −$3.33 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
41% avg · 5y
FY22 123%FY23 68%FY24 24%FY25 3%FY26 -16%

It earned about 41% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−20% shares · 5y

Share count is down 20% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $0.89 and $5.33 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$0.89
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$1.86M
DCF · Growth Exit 5Y
$0.93
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$1.86M
Earnings Power Value
$5.33
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$27.9M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $0.93
The three cases
Bear0.0%$0.93
Base0.0%$0.93
Bull5.0%$1.05

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-01-29 · accession 0000950170-24-034763 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-01-28 · accession 0000950170-25-042703 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-02-03 · accession 0001193125-26-115660 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K/A · period ending 2022-01-29 · accession 0001193125-26-239304 (NetIncomeLoss)
  5. 10-K · period ending 2022-01-29 · accession 0000950170-24-034763 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2023-01-28 · accession 0000950170-25-042703 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2024-02-03 · accession 0001193125-26-115660 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-01-29 · accession 0000950170-24-034763 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 10-K · period ending 2023-01-28 · accession 0000950170-25-042703 (PaymentsToAcquirePropertyPlantAndEquipment)
  10. 10-K · period ending 2024-02-03 · accession 0001193125-26-115660 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-01-29 · accession 0000950170-23-008413 (CashAndCashEquivalentsAtCarryingValue)
  12. 10-K · period ending 2023-01-28 · accession 0000950170-24-034763 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2024-02-03 · accession 0000950170-25-042703 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2025-02-01 · accession 0001193125-26-115660 (CashAndCashEquivalentsAtCarryingValue)