Dupont De Price To Earning vs. Return On Equity

DD Stock  USD 83.59  0.07  0.08%   
Based on the measurements of profitability obtained from Dupont De's financial statements, Dupont De Nemours may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Dupont De's ability to earn profits and add value for shareholders. At present, Dupont De's Days Sales Outstanding is projected to increase slightly based on the last few years of reporting. The current year's EV To Sales is expected to grow to 3.49, whereas Operating Cash Flow Sales Ratio is forecasted to decline to 0.12. At present, Dupont De's Net Income Applicable To Common Shares is projected to increase significantly based on the last few years of reporting. The current year's Net Income From Continuing Ops is expected to grow to about 1.7 B, whereas Income Before Tax is forecasted to decline to about 478.8 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.30.3508
Fairly Down
Slightly volatile
Operating Profit Margin0.120.1912
Way Down
Slightly volatile
For Dupont De profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dupont De to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dupont De Nemours utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dupont De's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dupont De Nemours over time as well as its relative position and ranking within its peers.
  

Dupont De's Revenue Breakdown by Earning Segment

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Is Diversified Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dupont De. If investors know Dupont will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dupont De listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.548
Dividend Share
1.5
Earnings Share
1.28
Revenue Per Share
28.881
Quarterly Revenue Growth
0.044
The market value of Dupont De Nemours is measured differently than its book value, which is the value of Dupont that is recorded on the company's balance sheet. Investors also form their own opinion of Dupont De's value that differs from its market value or its book value, called intrinsic value, which is Dupont De's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dupont De's market value can be influenced by many factors that don't directly affect Dupont De's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dupont De's value and its price as these two are different measures arrived at by different means. Investors typically determine if Dupont De is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dupont De's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Dupont De Nemours Return On Equity vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Dupont De's current stock value. Our valuation model uses many indicators to compare Dupont De value to that of its competitors to determine the firm's financial worth.
Dupont De Nemours is rated below average in price to earning category among its peers. It is rated below average in return on equity category among its peers . The ratio of Price To Earning to Return On Equity for Dupont De Nemours is about  1,000 . At present, Dupont De's Return On Equity is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Dupont De by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Dupont Return On Equity vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Dupont De

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
21.91 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Dupont De

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0219
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Dupont Return On Equity Comparison

Dupont De is currently under evaluation in return on equity category among its peers.

Dupont De Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Dupont De, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dupont De will eventually generate negative long term returns. The profitability progress is the general direction of Dupont De's change in net profit over the period of time. It can combine multiple indicators of Dupont De, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-910 M-955.5 M
Operating Income2.3 B3.4 B
Income Before Tax504 M478.8 M
Total Other Income Expense Net-1.8 B-1.7 B
Net Income494 M469.3 M
Income Tax Expense-29 M-27.6 M
Net Income Applicable To Common Shares6.7 BB
Net Income From Continuing Ops938 M1.7 B
Interest Income174 M165.3 M
Net Interest Income-243 M-255.2 M
Non Operating Income Net Other239.4 M227.4 M
Change To Netincome-4.6 B-4.4 B
Net Income Per Share 0.94  0.89 
Income Quality 3.88  1.97 
Net Income Per E B T 0.84  0.58 

Dupont Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Dupont De. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Dupont De position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Dupont De's important profitability drivers and their relationship over time.

Use Dupont De in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dupont De position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dupont De will appreciate offsetting losses from the drop in the long position's value.

Dupont De Pair Trading

Dupont De Nemours Pair Trading Analysis

The ability to find closely correlated positions to Dupont De could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dupont De when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dupont De - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dupont De Nemours to buy it.
The correlation of Dupont De is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dupont De moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dupont De Nemours moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dupont De can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Dupont De position

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To fully project Dupont De's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Dupont De Nemours at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Dupont De's income statement, its balance sheet, and the statement of cash flows.
Potential Dupont De investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Dupont De investors may work on each financial statement separately, they are all related. The changes in Dupont De's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Dupont De's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.