CHRISTIAN DIOR Return On Equity vs. Cash Flow From Operations

DIO0 Stock  EUR 145.00  2.00  1.36%   
Considering CHRISTIAN DIOR's profitability and operating efficiency indicators, CHRISTIAN DIOR ADR14EO2 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 CHRISTIAN DIOR's ability to earn profits and add value for shareholders.
For CHRISTIAN DIOR profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CHRISTIAN DIOR to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CHRISTIAN DIOR ADR14EO2 utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CHRISTIAN DIOR's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CHRISTIAN DIOR ADR14EO2 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 CHRISTIAN DIOR's value and its price as these two are different measures arrived at by different means. Investors typically determine if CHRISTIAN DIOR is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CHRISTIAN DIOR'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.

CHRISTIAN DIOR ADR14EO2 Cash Flow From Operations vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining CHRISTIAN DIOR's current stock value. Our valuation model uses many indicators to compare CHRISTIAN DIOR value to that of its competitors to determine the firm's financial worth.
CHRISTIAN DIOR ADR14EO2 is rated # 2 in return on equity category among its peers. It is rated below average in cash flow from operations category among its peers making about  35,075,830,913  of Cash Flow From Operations per Return On Equity. 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 CHRISTIAN DIOR's earnings, one of the primary drivers of an investment's value.

CHRISTIAN Cash Flow From Operations 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.

CHRISTIAN DIOR

Return On Equity

 = 

Net Income

Total Equity

 = 
0.31
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.
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.

CHRISTIAN DIOR

Operating Cash Flow

 = 

EBITDA

-

Taxes

 = 
10.87 B
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.

CHRISTIAN Cash Flow From Operations Comparison

CHRISTIAN DIOR is rated # 5 in cash flow from operations category among its peers.

CHRISTIAN DIOR Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in CHRISTIAN DIOR, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CHRISTIAN DIOR will eventually generate negative long term returns. The profitability progress is the general direction of CHRISTIAN DIOR's change in net profit over the period of time. It can combine multiple indicators of CHRISTIAN DIOR, 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.
Christian Dior SE, through its subsidiaries, engages in the production, distribution, and retail of fashion and leather goods, wines and spirits, perfumes and cosmetics, and watches and jewelry worldwide. The company was incorporated in 1946 and is headquartered in Paris, France. CHRISTIAN DIOR operates under Luxury Goods classification in Germany and is traded on Frankfurt Stock Exchange. It employs 1283 people.

CHRISTIAN Profitability Driver Comparison

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

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

CHRISTIAN DIOR Pair Trading

CHRISTIAN DIOR ADR14EO2 Pair Trading Analysis

The ability to find closely correlated positions to CHRISTIAN DIOR could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CHRISTIAN DIOR 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 CHRISTIAN DIOR - 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 CHRISTIAN DIOR ADR14EO2 to buy it.
The correlation of CHRISTIAN DIOR 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 CHRISTIAN DIOR moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CHRISTIAN DIOR ADR14EO2 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 CHRISTIAN DIOR 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

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Other Information on Investing in CHRISTIAN Stock

To fully project CHRISTIAN DIOR's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CHRISTIAN DIOR ADR14EO2 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 CHRISTIAN DIOR's income statement, its balance sheet, and the statement of cash flows.
Potential CHRISTIAN DIOR investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although CHRISTIAN DIOR investors may work on each financial statement separately, they are all related. The changes in CHRISTIAN DIOR's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on CHRISTIAN DIOR'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.