Krispy Kreme Net Income vs. Return On Equity
| DNUT Stock | USD 10.04 0.07 0.69% |
Net Loss | First Reported 2010-12-31 | Previous Quarter -37.9 M | Current Value -39.8 M | Quarterly Volatility 14.7 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.34 | 0.2825 |
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| Operating Profit Margin | 0.0074 | 0.0078 |
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For Krispy Kreme profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Krispy Kreme to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Krispy Kreme utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Krispy Kreme's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Krispy Kreme over time as well as its relative position and ranking within its peers.
Krispy |
Krispy Kreme's Revenue Breakdown by Earning Segment
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Is Hotels, Restaurants & Leisure 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 Krispy Kreme. If investors know Krispy 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 Krispy Kreme listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Dividend Share 0.14 | Earnings Share 0.16 | Revenue Per Share 10.132 | Quarterly Revenue Growth (0.07) | Return On Assets 0.0019 |
The market value of Krispy Kreme is measured differently than its book value, which is the value of Krispy that is recorded on the company's balance sheet. Investors also form their own opinion of Krispy Kreme's value that differs from its market value or its book value, called intrinsic value, which is Krispy Kreme'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 Krispy Kreme's market value can be influenced by many factors that don't directly affect Krispy Kreme'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 Krispy Kreme's value and its price as these two are different measures arrived at by different means. Investors typically determine if Krispy Kreme is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Krispy Kreme'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.
Krispy Kreme Return On Equity vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Krispy Kreme's current stock value. Our valuation model uses many indicators to compare Krispy Kreme value to that of its competitors to determine the firm's financial worth. Krispy Kreme is one of the top stocks in net income category among its peers. It also is one of the top stocks in return on equity category among its peers . At this time, Krispy Kreme's Net Loss is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Krispy Kreme 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.Krispy Return On Equity vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Krispy Kreme |
| = | (37.92 M) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
Krispy Kreme |
| = | 0.0227 |
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.
Krispy Return On Equity Comparison
Krispy Kreme is currently under evaluation in return on equity category among its peers.
Krispy Kreme Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Krispy Kreme, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Krispy Kreme will eventually generate negative long term returns. The profitability progress is the general direction of Krispy Kreme's change in net profit over the period of time. It can combine multiple indicators of Krispy Kreme, 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 | 7.2 M | 7.6 M | |
| Net Loss | -14.1 M | -14.8 M | |
| Income Tax Expense | -4.3 M | -4.1 M | |
| Net Interest Income | -47.2 M | -49.5 M | |
| Operating Income | 13.1 M | 21.3 M | |
| Net Loss | -39.5 M | -41.5 M | |
| Income Before Tax | -41 M | -38.9 M | |
| Total Other Income Expense Net | -54.1 M | -56.8 M | |
| Net Loss | -37.9 M | -36 M | |
| Non Operating Income Net Other | -2.7 M | -2.9 M | |
| Change To Netincome | 7.2 M | 6.8 M | |
| Net Loss | (0.23) | (0.21) | |
| Income Quality | (1.20) | (1.26) | |
| Net Income Per E B T | 0.93 | 1.73 |
Krispy Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Krispy Kreme. 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 Krispy Kreme 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 Krispy Kreme's important profitability drivers and their relationship over time.
Use Krispy Kreme 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 Krispy Kreme 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 Krispy Kreme will appreciate offsetting losses from the drop in the long position's value.Krispy Kreme Pair Trading
Krispy Kreme Pair Trading Analysis
The ability to find closely correlated positions to Krispy Kreme could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Krispy Kreme 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 Krispy Kreme - 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 Krispy Kreme to buy it.
The correlation of Krispy Kreme 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 Krispy Kreme moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Krispy Kreme 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 Krispy Kreme 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 Krispy Kreme position
In addition to having Krispy Kreme 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?
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Companies involved in production and distribution of wines and alcoholic beverages. The Alcohol theme has 43 constituents at this time.
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Additional Tools for Krispy Stock Analysis
When running Krispy Kreme's price analysis, check to measure Krispy Kreme's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Krispy Kreme is operating at the current time. Most of Krispy Kreme's value examination focuses on studying past and present price action to predict the probability of Krispy Kreme's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Krispy Kreme's price. Additionally, you may evaluate how the addition of Krispy Kreme to your portfolios can decrease your overall portfolio volatility.