Christian Dior Return On Equity vs. Net Income
| DIO Stock | EUR 589.00 0.00 0.00% |
For Christian Dior profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Christian Dior to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Christian Dior SE utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Christian Dior's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Christian Dior SE over time as well as its relative position and ranking within its peers.
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Christian Dior SE Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Christian Dior's current stock value. Our valuation model uses many indicators to compare Christian Dior value to that of its competitors to determine the firm's financial worth. Christian Dior SE is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in net income category among its peers making up about 16,932,557,343 of Net Income per Return On Equity. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Christian Dior's earnings, one of the primary drivers of an investment's value.Christian Net Income vs. Return On Equity
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.
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| = | 0.29 |
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.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
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| = | 4.95 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Christian Net Income Comparison
Christian Dior is currently under evaluation in net income category among its peers.
Christian Dior Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Christian Dior, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Christian Dior will eventually generate negative long term returns. The profitability progress is the general direction of Christian Dior's change in net profit over the period of time. It can combine multiple indicators of Christian Dior, 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.
Christian Dior SE, through its subsidiaries, engages in the production, distribution, and retail of fashion and leather goods, wines and spirits, perfumes and cosmetics, watches and jewelry, and footwear and accessories worldwide. Christian Dior SE was founded in 1946 and is headquartered in Paris, France. CHRISTIAN DIOR operates under Luxury Goods classification in Germany and is traded on Frankfurt Stock Exchange. It employs 1277 people.
Christian Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Christian Dior. 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 Christian Dior 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 Christian Dior's important profitability drivers and their relationship over time.
Use Christian Dior 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 Christian Dior 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 Christian Dior will appreciate offsetting losses from the drop in the long position's value.Christian Dior Pair Trading
Christian Dior SE Pair Trading Analysis
The ability to find closely correlated positions to Christian Dior could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Christian Dior 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 Christian Dior - 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 Christian Dior SE to buy it.
The correlation of Christian Dior 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 Christian Dior moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Christian Dior SE 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 Christian Dior 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.Use Investing Themes to Complement your Christian Dior position
In addition to having Christian Dior in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Non-Metallic and Industrial Metal Mining Thematic Idea Now
Non-Metallic and Industrial Metal Mining
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Non-Metallic and Industrial Metal Mining theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Non-Metallic and Industrial Metal Mining Theme or any other thematic opportunities.
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Other Information on Investing in Christian Stock
To fully project Christian Dior's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Christian Dior SE 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 Christian Dior's income statement, its balance sheet, and the statement of cash flows.