Dream Finders Return On Equity vs. Current Valuation

DFH Stock  USD 23.19  0.89  3.70%   
Based on Dream Finders' profitability indicators, Dream Finders Homes 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 Dream Finders' ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.27574729
Current Value
0.52
Quarterly Volatility
0.10769791
 
Credit Downgrade
 
Yuan Drop
 
Covid
The Dream Finders' current Price To Sales Ratio is estimated to increase to 1.17. The Dream Finders' current Days Sales Outstanding is estimated to increase to 5.17. As of now, Dream Finders' Income Tax Expense is increasing as compared to previous years. The Dream Finders' current Income Quality is estimated to increase to 1.28, while Accumulated Other Comprehensive Income is projected to decrease to (1.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.130.1965
Way Down
Slightly volatile
Net Profit Margin0.04850.0789
Way Down
Slightly volatile
Operating Profit Margin0.06320.1142
Way Down
Slightly volatile
Pretax Profit Margin0.06380.1079
Way Down
Slightly volatile
Return On Assets0.06690.1155
Way Down
Slightly volatile
Return On Equity0.520.2757
Way Up
Slightly volatile
For Dream Finders profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dream Finders to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dream Finders Homes utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dream Finders's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dream Finders Homes over time as well as its relative position and ranking within its peers.
  

Dream Finders' Revenue Breakdown by Earning Segment

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Is Household Durables 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 Dream Finders. If investors know Dream 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 Dream Finders 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
(0.06)
Earnings Share
3.02
Revenue Per Share
43.169
Quarterly Revenue Growth
0.124
Return On Assets
0.0907
The market value of Dream Finders Homes is measured differently than its book value, which is the value of Dream that is recorded on the company's balance sheet. Investors also form their own opinion of Dream Finders' value that differs from its market value or its book value, called intrinsic value, which is Dream Finders' 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 Dream Finders' market value can be influenced by many factors that don't directly affect Dream Finders' 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 Dream Finders' value and its price as these two are different measures arrived at by different means. Investors typically determine if Dream Finders is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dream Finders' 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.

Dream Finders Homes Current Valuation vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Dream Finders's current stock value. Our valuation model uses many indicators to compare Dream Finders value to that of its competitors to determine the firm's financial worth.
Dream Finders Homes is rated # 2 in return on equity category among its peers. It is rated # 4 in current valuation category among its peers reporting about  13,254,260,347  of Current Valuation per Return On Equity. As of now, Dream Finders' Return On Equity is decreasing as compared to previous years. 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 Dream Finders' earnings, one of the primary drivers of an investment's value.

Dream Current Valuation vs. Return On Equity

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.

Dream Finders

Return On Equity

 = 

Net Income

Total Equity

 = 
0.28
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.
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.

Dream Finders

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
3.67 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.

Dream Current Valuation vs Competition

Dream Finders Homes is rated # 4 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 23.7 Billion. Dream Finders retains roughly 3.67 Billion in current valuation claiming about 15% of stocks in Consumer Discretionary industry.

Dream Finders Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Dream Finders, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dream Finders will eventually generate negative long term returns. The profitability progress is the general direction of Dream Finders' change in net profit over the period of time. It can combine multiple indicators of Dream Finders, 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-1.1 M-1.1 M
Net Interest Income-36.8 K-38.6 K
Operating Income428 M449.4 M
Net Income From Continuing Ops293 M154.5 M
Income Before Tax404.4 M424.6 M
Total Other Income Expense Net-23.6 M-22.4 M
Net Income Applicable To Common Shares301.7 M316.7 M
Net Income307.9 M159.4 M
Income Tax Expense96.5 M101.3 M
Non Operating Income Net Other18.5 M13.7 M
Change To Netincome20 M15.5 M
Net Income Per Share 3.18  3.02 
Income Quality 1.22  1.28 
Net Income Per E B T 0.73  0.84 

Dream Profitability Driver Comparison

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

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

Dream Finders Pair Trading

Dream Finders Homes Pair Trading Analysis

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

In addition to having Dream Finders 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 Banks - Regional Thematic Idea Now

Banks - Regional
Banks - Regional Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Banks - Regional theme has 19 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 Banks - Regional Theme or any other thematic opportunities.
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When determining whether Dream Finders Homes offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Dream Finders' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Dream Finders Homes Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Dream Finders Homes Stock:
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You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
To fully project Dream Finders' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Dream Finders Homes 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 Dream Finders' income statement, its balance sheet, and the statement of cash flows.
Potential Dream Finders investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Dream Finders investors may work on each financial statement separately, they are all related. The changes in Dream Finders's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Dream Finders'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.