JD Sports Operating Margin vs. Current Valuation
| JD Stock | 101.80 1.60 1.55% |
For JD Sports profitability analysis, we use financial ratios and fundamental drivers that measure the ability of JD Sports to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well JD Sports Fashion utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between JD Sports's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of JD Sports Fashion over time as well as its relative position and ranking within its peers.
JD Sports |
JD Sports Fashion Current Valuation vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining JD Sports's current stock value. Our valuation model uses many indicators to compare JD Sports value to that of its competitors to determine the firm's financial worth. JD Sports Fashion is currently regarded as number one stock in operating margin category among its peers. It is rated second overall in current valuation category among its peers reporting about 98,814,115,659 of Current Valuation per Operating Margin. 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 JD Sports' earnings, one of the primary drivers of an investment's value.JD Sports Current Valuation 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.
JD Sports |
| = | 0.08 % |
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.
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.
JD Sports |
| = | 8.1 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.
JD Sports Current Valuation vs Competition
JD Sports Fashion is rated second overall in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Discretionary industry is currently estimated at about 36.56 Trillion. JD Sports adds roughly 8.1 Billion in current valuation claiming only tiny portion of stocks in Consumer Discretionary industry.
JD Sports Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in JD Sports, profitability is also one of the essential criteria for including it into their portfolios because, without profit, JD Sports will eventually generate negative long term returns. The profitability progress is the general direction of JD Sports' change in net profit over the period of time. It can combine multiple indicators of JD Sports, 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 | -227.6 M | -21.6 M | |
| Operating Income | 927.2 M | 18 M | |
| Income Before Tax | 811.2 M | 10.8 M | |
| Total Other Income Expense Net | -116 M | 7.2 M | |
| Net Income | 605 M | 6.8 M | |
| Income Tax Expense | 206.2 M | 4 M | |
| Net Income Applicable To Common Shares | 15.9 M | 26.1 M | |
| Net Income From Continuing Ops | 605 M | 337.5 M | |
| Net Interest Income | -62.7 M | -65.8 M | |
| Interest Income | 39.2 M | 41.2 M | |
| Change To Netincome | 33.4 M | 26.1 M |
JD Sports Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on JD Sports. 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 JD Sports 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 JD Sports' important profitability drivers and their relationship over time.
Use JD Sports 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 JD Sports 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 JD Sports will appreciate offsetting losses from the drop in the long position's value.JD Sports Pair Trading
JD Sports Fashion Pair Trading Analysis
The ability to find closely correlated positions to JD Sports could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace JD Sports 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 JD Sports - 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 JD Sports Fashion to buy it.
The correlation of JD Sports 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 JD Sports moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if JD Sports Fashion 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 JD Sports 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 JD Sports position
In addition to having JD Sports 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 Tech Funds Thematic Idea Now
Tech Funds
Funds or Etfs that invest in companies involved in research, development, testing, or distribution of technologically based goods and services. The Tech Funds theme has 40 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 Tech Funds Theme or any other thematic opportunities.
| View All Next | Launch |
Other Information on Investing in JD Sports Stock
To fully project JD Sports' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of JD Sports Fashion 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 JD Sports' income statement, its balance sheet, and the statement of cash flows.