Smith Douglas Current Valuation vs. Return On Equity
| SDHC Stock | 33.59 2.07 6.57% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.22 | 0.2829 |
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| Net Profit Margin | 0.13 | 0.1611 |
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| Operating Profit Margin | 0.12 | 0.162 |
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| Pretax Profit Margin | 0.13 | 0.1611 |
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| Return On Assets | 0.34 | 0.3493 |
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| Return On Equity | 0.77 | 0.5897 |
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For Smith Douglas profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Smith Douglas to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Smith Douglas Homes utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Smith Douglas's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Smith Douglas Homes over time as well as its relative position and ranking within its peers.
Smith |
Is Household Durables 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 Smith Douglas. If investors know Smith 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 Smith Douglas 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 (0.28) | Revenue Per Share 6.7 K | Quarterly Revenue Growth (0.03) | Return On Equity 0.6993 |
The market value of Smith Douglas Homes is measured differently than its book value, which is the value of Smith that is recorded on the company's balance sheet. Investors also form their own opinion of Smith Douglas' value that differs from its market value or its book value, called intrinsic value, which is Smith Douglas' 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 Smith Douglas' market value can be influenced by many factors that don't directly affect Smith Douglas' 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 Smith Douglas' value and its price as these two are different measures arrived at by different means. Investors typically determine if Smith Douglas is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Smith Douglas' 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.
Smith Douglas Homes Return On Equity vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Smith Douglas's current stock value. Our valuation model uses many indicators to compare Smith Douglas value to that of its competitors to determine the firm's financial worth. Smith Douglas Homes is currently regarded number one company in current valuation category among its peers. It also is currently regarded as top stock in return on equity category among its peers . The ratio of Current Valuation to Return On Equity for Smith Douglas Homes is about 2,447,813,659 . At present, Smith Douglas' Return On Equity is projected to increase slightly based on the last few years of reporting. 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 Smith Douglas' earnings, one of the primary drivers of an investment's value.Smith Douglas' Earnings Breakdown by Geography
Smith Current Valuation vs. Competition
Smith Douglas Homes is currently regarded number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Discretionary industry is at this time estimated at about 68.08 Billion. Smith Douglas holds roughly 1.71 Billion in current valuation claiming about 2.51% of stocks in Consumer Discretionary industry.
Smith Return On Equity vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Smith Douglas |
| = | 1.71 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
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.
Smith Douglas |
| = | 0.7 |
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.
Smith Return On Equity Comparison
Smith Douglas is currently under evaluation in return on equity category among its peers.
Smith Douglas Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Smith Douglas, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Smith Douglas will eventually generate negative long term returns. The profitability progress is the general direction of Smith Douglas' change in net profit over the period of time. It can combine multiple indicators of Smith Douglas, 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 | ||
| Net Interest Income | -1.7 M | -1.7 M | |
| Operating Income | 123.9 M | 118.1 M | |
| Net Income From Continuing Ops | 123.2 M | 119.6 M | |
| Income Before Tax | 123.2 M | 119.6 M | |
| Total Other Income Expense Net | -705 K | -669.8 K | |
| Net Income | 123.2 M | 119.6 M | |
| Income Tax Expense | 5 M | 4.5 M | |
| Net Income Per Share | 2.40 | 2.28 | |
| Income Quality | 0.62 | 0.54 |
Smith Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Smith Douglas. 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 Smith Douglas 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 Smith Douglas' important profitability drivers and their relationship over time.
Use Smith Douglas 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 Smith Douglas 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 Smith Douglas will appreciate offsetting losses from the drop in the long position's value.Smith Douglas Pair Trading
Smith Douglas Homes Pair Trading Analysis
The ability to find closely correlated positions to Smith Douglas could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Smith Douglas 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 Smith Douglas - 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 Smith Douglas Homes to buy it.
The correlation of Smith Douglas 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 Smith Douglas moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Smith Douglas Homes 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 Smith Douglas 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 Smith Douglas position
In addition to having Smith Douglas 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 Electrical Equipment Thematic Idea Now
Electrical Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Electrical Equipment 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 Electrical Equipment Theme or any other thematic opportunities.
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Check out World Market Map. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
To fully project Smith Douglas' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Smith Douglas Homes 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 Smith Douglas' income statement, its balance sheet, and the statement of cash flows.