Dollar General Operating Margin vs. Net Income
| DGCO34 Stock | BRL 18.95 1.00 5.01% |
For Dollar General profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dollar General to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dollar General utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dollar General's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dollar General over time as well as its relative position and ranking within its peers.
Dollar |
Dollar General Net Income vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Dollar General's current stock value. Our valuation model uses many indicators to compare Dollar General value to that of its competitors to determine the firm's financial worth. Dollar General is rated below average in operating margin category among its peers. It is rated below average in net income category among its peers making up about 27,264,000,000 of Net Income per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Dollar General by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Dollar General'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.Dollar 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.
Dollar General |
| = | 0.09 % |
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.
Dollar General |
| = | 2.4 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.
Dollar Net Income Comparison
Dollar General is rated below average in net income category among its peers.
Dollar General Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Dollar General, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dollar General will eventually generate negative long term returns. The profitability progress is the general direction of Dollar General's change in net profit over the period of time. It can combine multiple indicators of Dollar General, 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.
Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, Midwestern, and eastern United States. Dollar General Corporation was founded in 19 and is based in Goodlettsville, Tennessee. DOLLAR GENERDRN operates under Discount Stores classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 158000 people.
Dollar Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Dollar General. 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 Dollar General 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 Dollar General's important profitability drivers and their relationship over time.
Use Dollar General 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 Dollar General 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 Dollar General will appreciate offsetting losses from the drop in the long position's value.Dollar General Pair Trading
Dollar General Pair Trading Analysis
The ability to find closely correlated positions to Dollar General could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dollar General 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 Dollar General - 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 Dollar General to buy it.
The correlation of Dollar General 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 Dollar General moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dollar General 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 Dollar General 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 Dollar General position
In addition to having Dollar General 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 Music and Video Thematic Idea Now
Music and Video
Companies specializing in music, video and movie production and distribution. The Music and Video theme has 36 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 Music and Video Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Dollar Stock
When determining whether Dollar General is a strong investment it is important to analyze Dollar General's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Dollar General's future performance. For an informed investment choice regarding Dollar Stock, refer to the following important reports:Check out Investing Opportunities. For information on how to trade Dollar Stock refer to our How to Trade Dollar Stock guide.You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
To fully project Dollar General's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Dollar General 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 Dollar General's income statement, its balance sheet, and the statement of cash flows.