Debenhams is our share tip of the week - 5 reasons to invest
Edmund Shing explains why you should invest in British multinational retailer Debenhams.
1) Prestigious department store: Debenhams is a multi-channel department store with 240 stores operating in 27 countries. Founded in 1778, the Debenhams brand has been around a long time.
2) Strong performance: The retailer is doing very well in the present day. It is a FTSE 250 mid-cap company with a market value of £1.06bn (as of 13 November 2015).
3) Designer portfolio: Debenhams also has a strong portolio of brand designers such as Jasper Conran and John Rocha. This positions the company as a designer outlet, but with this it also provides relatively good value.
4) Online presence: Debenham's online presence is growing quickly at 11% a year. Online sales now represent 14% of group sales at Debenhams, driven largely by the click and collect system that they have in place where you can buy online and collect in the store.
5) It's cheap: And finally, Debenhams is also a cheap stock. It has a relatively cheap P/E Ratio (TTM) of 11.72 and a dividend yield of 3.82% (as of 13 November).
Edmund Shing is Global Head of Equity Derivative Strategy at BNP Paribas in London. He holds a PhD in Artificial Intelligence.
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