Derwent London EBITDA vs. Return On Equity

DLN Stock   2,040  20.00  0.97%   
Considering Derwent London's profitability and operating efficiency indicators, Derwent London PLC may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Derwent London's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
-438 M
Current Value
-416.1 M
Quarterly Volatility
374.4 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
For Derwent London profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Derwent London to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Derwent London PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Derwent London's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Derwent London PLC 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 Derwent London's value and its price as these two are different measures arrived at by different means. Investors typically determine if Derwent London is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Derwent London'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.

Derwent London PLC Return On Equity vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Derwent London's current stock value. Our valuation model uses many indicators to compare Derwent London value to that of its competitors to determine the firm's financial worth.
Derwent London PLC is one of the top stocks in ebitda category among its peers. It also is one of the top stocks in return on equity category among its peers . At present, Derwent London's EBITDA is projected to decrease significantly 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 Derwent London's earnings, one of the primary drivers of an investment's value.

Derwent Return On Equity vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Derwent London

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
(438 M)
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
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.

Derwent London

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.099
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.

Derwent Return On Equity Comparison

Derwent London is currently under evaluation in return on equity category among its peers.

Derwent London Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Derwent London, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Derwent London will eventually generate negative long term returns. The profitability progress is the general direction of Derwent London's change in net profit over the period of time. It can combine multiple indicators of Derwent London, 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 Income939.3 M986.3 M
Operating Income-428.9 M-407.5 M
Income Before Tax-475.9 M-452.1 M
Total Other Income Expense Net-47 M-44.6 M
Net Loss-476.4 M-452.6 M
Income Tax Expense500 K525 K
Net Loss-322.6 M-306.4 M
Net Loss-476.4 M-452.6 M
Net Interest Income-39.5 M-41.5 M
Interest Income900 K860 K
Change To Netincome450.7 M473.2 M

Derwent Profitability Driver Comparison

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

Use Derwent London 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 Derwent London 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 Derwent London will appreciate offsetting losses from the drop in the long position's value.

Derwent London Pair Trading

Derwent London PLC Pair Trading Analysis

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

In addition to having Derwent London 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.

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Run Toys Thematic Idea Now

Toys
Toys Theme
Companies producing and distributing toys and different gaming products for kids. The Toys theme has 45 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 Toys Theme or any other thematic opportunities.
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Other Information on Investing in Derwent Stock

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