Destination Price To Earning vs. Operating Margin

DXLG Stock  USD 2.81  0.10  3.44%   
Considering Destination's profitability and operating efficiency indicators, Destination XL Group may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Destination's ability to earn profits and add value for shareholders. At this time, Destination's Sales General And Administrative To Revenue is most likely to slightly decrease in the upcoming years. The Destination's current Days Of Sales Outstanding is estimated to increase to 3.19, while EV To Sales is projected to decrease to 0.71. At this time, Destination's Net Income is most likely to increase significantly in the upcoming years. The Destination's current Income Tax Expense is estimated to increase to about 11.1 M, while Total Other Income Expense Net is forecasted to increase to (3.4 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.460.4572
Slightly Up
Slightly volatile
For Destination profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Destination to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Destination XL Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Destination's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Destination XL Group over time as well as its relative position and ranking within its peers.
  
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Is Specialty Retail 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 Destination. If investors know Destination 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 Destination 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
(0.78)
Earnings Share
0.15
Revenue Per Share
8.429
Quarterly Revenue Growth
(0.11)
Return On Assets
0.0364
The market value of Destination XL Group is measured differently than its book value, which is the value of Destination that is recorded on the company's balance sheet. Investors also form their own opinion of Destination's value that differs from its market value or its book value, called intrinsic value, which is Destination's 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 Destination's market value can be influenced by many factors that don't directly affect Destination's 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 Destination's value and its price as these two are different measures arrived at by different means. Investors typically determine if Destination is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Destination'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.

Destination XL Group Operating Margin vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Destination's current stock value. Our valuation model uses many indicators to compare Destination value to that of its competitors to determine the firm's financial worth.
Destination XL Group is rated below average in price to earning category among its peers. It is rated # 5 in operating margin category among its peers reporting about  0.01  of Operating Margin per Price To Earning. The ratio of Price To Earning to Operating Margin for Destination XL Group is roughly  198.00 . At this time, Destination's Operating Profit Margin is most likely to increase slightly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Destination by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Destination Operating Margin vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Destination

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
4.95 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.

Destination

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.03 %
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.

Destination Operating Margin Comparison

Destination is currently under evaluation in operating margin category among its peers.

Destination Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Destination, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Destination will eventually generate negative long term returns. The profitability progress is the general direction of Destination's change in net profit over the period of time. It can combine multiple indicators of Destination, 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-5.7 M-6 M
Operating Income41.9 M44 M
Income Before Tax38.4 M40.3 M
Total Other Income Expense Net-3.6 M-3.4 M
Net Income27.9 M29.2 M
Income Tax Expense10.5 M11.1 M
Net Income Applicable To Common Shares102.5 M107.6 M
Net Income From Continuing Ops27.9 M29.2 M
Non Operating Income Net Other-226.8 K-238.1 K
Interest Income2.8 M2.4 M
Net Interest Income2.1 M2.2 M
Change To Netincome-26.8 M-25.5 M
Net Loss 0.46 (0.25)
Income Quality 1.78 (1.12)
Net Income Per E B T 0.73  1.12 

Destination Profitability Driver Comparison

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

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

Destination Pair Trading

Destination XL Group Pair Trading Analysis

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

In addition to having Destination 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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Basic Utilities
Basic Utilities Theme
Companies involved in production and distribution of electric, gas, water, and other energy utilities. The Basic Utilities theme has 46 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 Basic Utilities Theme or any other thematic opportunities.
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When determining whether Destination XL Group is a strong investment it is important to analyze Destination'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 Destination's future performance. For an informed investment choice regarding Destination Stock, refer to the following important reports:
To fully project Destination's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Destination XL Group 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 Destination's income statement, its balance sheet, and the statement of cash flows.
Potential Destination investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Destination investors may work on each financial statement separately, they are all related. The changes in Destination's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Destination'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.