Definity Financial Current Valuation vs. Return On Equity
| DFY Stock | 58.66 0.14 0.24% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.8 | 0.9 |
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| Return On Assets | 0.0506 | 0.0482 |
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| Return On Equity | 0.0662 | 0.1229 |
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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.
Definity |
Definity Financial Corp Return On Equity 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 return on equity category among its peers . The ratio of Current Valuation to Return On Equity for Definity Financial Corp is about 37,458,981,758 . At this time, Definity Financial's Return On Equity 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 65.61 Billion. Definity Financial retains roughly 6.74 Billion in current valuation claiming about 10% of equities under Financials industry.
Definity 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.
Definity Financial |
| = | 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.
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.
Definity Financial |
| = | 0.18 |
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.
Definity Return On Equity Comparison
Definity Financial is currently under evaluation in return on equity 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -27 M | -25.6 M | |
| Operating Income | -4.4 M | -4.2 M | |
| Income Before Tax | 467.2 M | 490.6 M | |
| Total Other Income Expense Net | 467.2 M | 490.6 M | |
| Net Income Applicable To Common Shares | 290.5 M | 305 M | |
| Net Income | 350.1 M | 367.6 M | |
| Income Tax Expense | 112.7 M | 118.3 M | |
| Interest Income | 185.4 M | 145.9 M | |
| Net Income From Continuing Ops | 354.5 M | 267.9 M | |
| Net Interest Income | 5.7 M | 3.2 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.Use Investing Themes to Complement your Definity Financial position
In addition to having Definity Financial 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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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Machinery 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 Machinery Theme or any other thematic opportunities.
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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.