Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, department store Dillard's (NYSE:DDS) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Dillards' business, and see what CAPS investors are saying about the stock right now.

Dillard's facts

Headquarters (founded)

Little Rock, Ark. (1938)

Market cap

$385.6 million


Department stores

TTM Revenue

$6.99 billion


Chairman/CEO William Dillard, II
CFO James Freeman

Return on Equity (average, last five years and TTM)

2.5% and (10.1%)


Macy's (NYSE:M)
J.C. Penney (NYSE:JCP)
Kohl's (NYSE:KSS)

CAPS members bearish on DDS also bearish on

D.R. Horton (NYSE:DHI)
Lennar (NYSE:LEN)

CAPS members bullish on DDS also bullish on

Bank of America (NYSE:BAC)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 176 of the 259 members who have rated Dillard's -- or 68% -- believe the stock will underperform the S&P 500 going forward. These bears include All-Star HansHauge, who is ranked in the top 2% of our community, and TSIF.

In late December, HansHauge noted that Dillard's "is bleeding money bad … and who is buying home furnishings when you can't re-finance and pull out artificial equity? Who is buying home furnishings when their home is getting foreclosed on? Outlook very grim."

In a pitch from three days ago, TSIF expanded on why Dillard's is a seemingly obvious dud:

Apparel and Home Funishings? Do I need a reason to red thumb it? A $149Mil loss … negative margins, $1.2B in debt. Inventory rising. Accounts Payable rising. Two losing quarters. Why are they paying a dividend? This 1938 founded store has some tough locations to run. I'm rooting for them, but the next few quarters will be ROUGH!

What do you think about Dillard's, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.