Davis Commodities Operating Margin vs. Net Income
Is Consumer Staples Distribution & Retail 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 Davis Commodities. Projected growth potential of Davis fundamentally drives upward valuation adjustments. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive Davis Commodities assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Quarterly Earnings Growth (0.97) | Earnings Share (0.19) | Revenue Per Share | Quarterly Revenue Growth 0.421 | Return On Assets |
Understanding Davis Commodities requires distinguishing between market price and book value, where the latter reflects Davis's accounting equity. The concept of intrinsic value - what Davis Commodities' is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Market sentiment, economic cycles, and investor behavior can push Davis Commodities' price substantially above or below its fundamental value.
It's important to distinguish between Davis Commodities' intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Davis Commodities should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. In contrast, Davis Commodities' trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.
Davis Commodities Net Income vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Davis Commodities's current stock value. Our valuation model uses many indicators to compare Davis Commodities value to that of its competitors to determine the firm's financial worth. Davis Commodities Limited is rated # 2 in operating margin category among its peers. It is one of the top stocks in net income category among its peers . At this time, Davis Commodities' Operating Profit Margin is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Davis Commodities 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.Davis Net Income vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Davis Commodities |
| = | (0) % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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.
Davis Commodities |
| = | (3.53 M) |
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.
Davis Net Income Comparison
Davis Commodities is currently under evaluation in net income category among its peers.
Davis Commodities Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Davis Commodities, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Davis Commodities will eventually generate negative long term returns. The profitability progress is the general direction of Davis Commodities' change in net profit over the period of time. It can combine multiple indicators of Davis Commodities, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 1.3 M | 744.7 K | |
| Net Interest Income | -119.7 K | -125.7 K | |
| Operating Income | -3.3 M | -3.2 M | |
| Net Loss | -3.2 M | -3 M | |
| Income Before Tax | -3 M | -2.9 M | |
| Total Other Income Expense Net | 314.1 K | 346.9 K | |
| Net Income Applicable To Common Shares | 5.3 M | 3.6 M | |
| Net Loss | -3.2 M | -3 M | |
| Income Tax Expense | 160.2 K | 152.2 K | |
| Change To Netincome | 175.5 K | 184.3 K | |
| Net Loss | (0.17) | (0.16) | |
| Income Quality | 0.25 | 0.24 | |
| Net Income Per E B T | 0.95 | 0.73 |
Davis Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Davis Commodities. 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 Davis Commodities 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 Davis Commodities' important profitability drivers and their relationship over time.
Davis Commodities Earnings per Share Projection vs Actual
Use Davis Commodities 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 Davis Commodities 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 Davis Commodities will appreciate offsetting losses from the drop in the long position's value.Davis Commodities Pair Trading
Davis Commodities Limited Pair Trading Analysis
The ability to find closely correlated positions to Davis Commodities could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Davis Commodities 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 Davis Commodities - 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 Davis Commodities Limited to buy it.
The correlation of Davis Commodities 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 Davis Commodities moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Davis Commodities 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 Davis Commodities 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 Davis Commodities position
In addition to having Davis Commodities 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?
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To fully project Davis Commodities' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Davis Commodities 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 Davis Commodities' income statement, its balance sheet, and the statement of cash flows.