Definity Financial Current Valuation vs. Gross Profit

DFY Stock   58.80  0.80  1.34%   
Taking into consideration Definity Financial's profitability measurements, Definity Financial Corp is yielding more profit at the present time then in previous quarter. It has a moderate chance of reporting better profitability numbers in January. Profitability indicators assess Definity Financial's ability to earn profits and add value for shareholders. At this time, Definity Financial's Price To Sales Ratio is very stable compared to the past year. As of the 11th of December 2024, Price Sales Ratio is likely to grow to 1.33, while Days Sales Outstanding is likely to drop 0.02. At this time, Definity Financial's Income Before Tax is very stable compared to the past year. As of the 11th of December 2024, Total Other Income Expense Net is likely to grow to about 490.6 M, though Accumulated Other Comprehensive Income is likely to grow to (25.6 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.80.9
Fairly Down
Slightly volatile
Return On Assets0.05060.0482
Sufficiently Up
Slightly volatile
Return On Equity0.06620.1229
Way Down
Slightly volatile
For Definity Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Definity Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Definity Financial Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Definity Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Definity Financial Corp over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Definity Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Definity Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Definity Financial'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.

Definity Financial Corp Gross Profit vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Definity Financial's current stock value. Our valuation model uses many indicators to compare Definity Financial value to that of its competitors to determine the firm's financial worth.
Definity Financial Corp is rated as one of the top companies in current valuation category among its peers. It also is one of the top stocks in gross profit category among its peers fabricating about  0.13  of Gross Profit per Current Valuation. The ratio of Current Valuation to Gross Profit for Definity Financial Corp is roughly  7.47 . At this time, Definity Financial's Gross Profit is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Definity Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Definity Financial's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Definity Current Valuation vs. Competition

Definity Financial Corp is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is currently estimated at about 70.47 Billion. Definity Financial holds roughly 6.74 Billion in current valuation claiming about 10% of equities under Financials industry.

Definity Gross Profit 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.

Definity Financial

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
6.74 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.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Definity Financial

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
902 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Definity Gross Profit Comparison

Definity Financial is currently under evaluation in gross profit category among its peers.

Definity Financial Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Definity Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Definity Financial will eventually generate negative long term returns. The profitability progress is the general direction of Definity Financial's change in net profit over the period of time. It can combine multiple indicators of Definity Financial, 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-27 M-25.6 M
Operating Income-4.4 M-4.2 M
Income Before Tax467.2 M490.6 M
Total Other Income Expense Net467.2 M490.6 M
Net Income Applicable To Common Shares290.5 M305 M
Net Income350.1 M367.6 M
Income Tax Expense112.7 M118.3 M
Interest Income185.4 M145.9 M
Net Income From Continuing Ops354.5 M267.9 M
Net Interest Income5.7 M3.2 M
Change To Netincome-22.1 M-21 M
Net Income Per Share 3.04  3.20 
Income Quality 1.00  0.95 
Net Income Per E B T 0.75  0.61 

Definity Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Definity Financial. 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 Definity Financial 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 Definity Financial's important profitability drivers and their relationship over time.

Use Definity Financial 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 Definity Financial 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 Definity Financial will appreciate offsetting losses from the drop in the long position's value.

Definity Financial Pair Trading

Definity Financial Corp Pair Trading Analysis

The ability to find closely correlated positions to Definity Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Definity Financial 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 Definity Financial - 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 Definity Financial Corp to buy it.
The correlation of Definity Financial 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 Definity Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Definity Financial Corp 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 Definity Financial 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 Definity Financial position

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Other Information on Investing in Definity Stock

To fully project Definity Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Definity Financial Corp 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 Definity Financial's income statement, its balance sheet, and the statement of cash flows.
Potential Definity Financial investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Definity Financial investors may work on each financial statement separately, they are all related. The changes in Definity Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Definity Financial'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.