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DXLG Rule Check

Destination XL Group Inc against the rules: which it passes, where it lags and what to look at next.

Price
$0.49
Market Cap
$27.1 M

Flags First

7Rules Failed2Cautions
  • Market CapFail
  • Share PriceFail
  • LiquidityFail
  • Quarterly Sales GrowthFail
  • ProfitabilityFail
  • +4 More

Fit ScoreScreened Out

Hits at least one elimination rule; under this approach it stays off the research list whatever its score.

59% of Rules Measured

Company Analysis

Stock Selection Focus · Tool: Claude

Claude writes a second opinion independent of the site's own analysis; while the market is open it reads the live price.

Categories

Growth0Weight 30 · 1 of 4 Measured
Price Strength50Weight 20 · 2 of 4 Measured
Profitability25Weight 15 · 2 of 2 Measured
Financial Health67Weight 15 · 3 of 3 Measured
Ownership50Weight 10 · 1 of 3 Measured
Catalyst Signals100Weight 10 · 1 of 3 Measured

Elimination · FailMarket Cap, Share Price, Liquidity

Rule by Rule

59% of Rules Measured

Elimination

3 of 3 Measured
  • Market CapAt least $300M$27.1 MFail
  • Share PriceAt least $5$0.49Fail
  • Liquidity500K shares and $10M traded per day on average78.6 K SharesFail

Growth

1 of 4 Measured
  • Quarterly EPS GrowthAt least 10% year over year—No Data
  • Quarterly Sales GrowthAt least 10% year over year− 3.4%Fail
  • Three-Year EPS GrowthAt least 10% annualized—No Data
  • Source of GrowthSales should grow at least 5% while profit grows− 3.4%No Data

Profitability

2 of 2 Measured
  • ProfitabilityPositive trailing twelve-month EPS− $0.69Fail
  • MarginsGross, operating and net margins positive−4.5%Caution

Financial Health

3 of 3 Measured
  • Current RatioAt least 1 — current assets cover current liabilities1.31Pass
  • Debt / EquityAt most 1; above 2 fails0.00Pass
  • Cash RunwayPositive free cash flow or at least two years of cash1.6 YrsFail

Price Strength

2 of 4 Measured
  • Versus the MarketSix-month return not behind the S&P 500—No Data
  • Versus Its SectorSix-month return not behind the sector fund—No Data
  • Distance from 52-Week LowAt least 30% above the low34.8%Pass
  • Distance from 52-Week HighAt most 25% below the high69.1%Fail

Ownership

1 of 3 Measured
  • DilutionShare count up at most 2% a year+ 2.9%Caution
  • Famous Fund InterestAmong tracked funds, adders not outnumbered by trimmers—No Data
  • Insider ActivityNo heavy net selling over six months—No Data

Catalyst Signals

1 of 3 Measured
  • Analyst TrendShare of buy ratings rising over three months+ 10.7 PtsPass
  • Upside to TargetAt least 10% to the average target—No Data
  • Quality of the Last ReportEarnings analysis score of at least 60—No Data

In each lane the line is the rule's threshold, the dot is the stock's value and the bar between them is the gap. Market cap, price and volume use a log scale: one step is ten times. A value beyond the end sits at the edge as an open dot.

Rule Bench

39ScoreScreened Out
  • 4Passed
  • 2Caution
  • 7Failed
  • 9No Data
DXLG

Each lamp is a rule: green passed, amber caution, red failed, grey no data. Tap a station to see its rules.

Weaknesses

  • Market cap of $27.1 M, below the $300M floor; hits the elimination rule.
  • Share price of $0.49, below $5; hits the elimination rule.
  • Thin trading: about 78.6 K shares a day.
  • Sales changed − 3.4% year over year last quarter, below the 10% floor.
  • Trailing EPS of − $0.69; the company is losing money.
  • Burning cash; at this pace cash lasts about 1.6 years.
  • The price is 69.1% below its 52-week high.
  • At least one margin is negative; operating margin −4.5%.
  • Share count up + 2.9% in a year; existing holders are being diluted.

Strengths

  • Current ratio of 1.31; short-term obligations are well covered.
  • Debt to equity of 0.00; a light debt load.
  • The price is 34.8% above its 52-week low.
  • The share of buy ratings rose 10.7 points in three months.

Next Steps

  1. Trading volume is low. Expect wider spreads and price impact on larger orders.
  2. The company is burning cash. Look for the funding plan (debt, share issuance, cash buffer) in the last report.
  3. The stock is far from its high. Do not treat it as cheap before finding why it fell (results, competition, sector); wait for the price to confirm a turn.
  4. The share count is rising. Check how much growth stays per share: buybacks or new issuance?
  5. Write down the concrete reason for growth: a new product, a contract, management or an industry shift. If you cannot say it in one sentence, waiting may be the better choice.

What You Should Check

  1. Is there a concrete reason for growth, and can you say it in one sentence?
  2. Where does the valuation sit against sector peers?
  3. Does the chart confirm the trend, or are you fighting a falling price?
  4. Is the position size within the loss you could bear if you are wrong?

The score averages the measurable rules with category weights: growth 30, price strength 20, profitability 15, health 15, ownership 10, catalysts 10. A pass counts in full, a caution half; rules we cannot measure stay out. A stock that hits an elimination rule is capped at 45. Growth above 300% counts as a base effect and is marked as a caution.

Sources: prices from Alpaca, fundamentals and analyst ratings from Finnhub, share counts from SEC filings, famous funds from 13F reports, targets and report scores from the site's own analyses.

This is not investment advice; it is a research tool that measures fit with the rules.

Alpaca · SIPUpdated 14:42 NY15 Minutes Delayed

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