Dupont Denemours Profitability Analysis

DD
 Stock
  

USD 58.64  0.69  1.16%   

For Dupont Denemours profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dupont Denemours to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dupont Denemours utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dupont Denemours's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dupont Denemours over time as well as its relative position and ranking within its peers. Continue to Investing Opportunities.
  
The current year Price to Sales Ratio is expected to grow to 2.96. The current year Return on Sales is expected to grow to 0.48. Dupont Denemours Consolidated Income is projected to increase significantly based on the last few years of reporting. The past year's Consolidated Income was at 6.51 Billion. The current year Net Income is expected to grow to about 7 B, whereas Net Loss Income from Discontinued Operations is forecasted to decline to (4.8 B).

Dupont Denemours Revenues

24.45 Billion

Is Dupont Denemours' industry 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 Dupont Denemours. If investors know Dupont 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 Dupont Denemours 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 YOY
0.73
Market Capitalization
29.5 B
Quarterly Revenue Growth YOY
0.07
Return On Assets
0.0373
Return On Equity
0.0605
The market value of Dupont Denemours is measured differently than its book value, which is the value of Dupont that is recorded on the company's balance sheet. Investors also form their own opinion of Dupont Denemours' value that differs from its market value or its book value, called intrinsic value, which is Dupont Denemours' 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 Dupont Denemours' market value can be influenced by many factors that don't directly affect Dupont Denemours' 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 Dupont Denemours' value and its price as these two are different measures arrived at by different means. Investors typically determine Dupont Denemours value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dupont Denemours' 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.

Dupont Denemours Price to Earning vs. Cash and Equivalents Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Dupont Denemours's current stock value. Our valuation model uses many indicators to compare Dupont Denemours value to that of its competitors to determine the firm's financial worth.
Dupont Denemours is rated below average in cash and equivalents category among related companies. It is one of the top stocks in price to earning category among related companies . The ratio of Cash and Equivalents to Price to Earning for Dupont Denemours is about  308,687,616 . Dupont Denemours Cash and Equivalents is projected to decrease significantly based on the last few years of reporting. The past year's Cash and Equivalents was at 2.02 Billion. Comparative valuation analysis is a catch-all model that can be used if you cannot value Dupont Denemours by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Dupont Denemours' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. 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 Dupont Denemours' earnings, one of the primary drivers of an investment's value.

Dupont Price to Earning vs. Cash and Equivalents

Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Dupont Denemours 
Cash 
 = 
Bank Deposits 
+  
Liquidities 
1.67 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
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.
Dupont Denemours 
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
5.41 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.

Dupont Price to Earning Comparison

Dupont Denemours is currently under evaluation in price to earning category among related companies.

Dupont Denemours Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Dupont Denemours, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dupont Denemours will eventually generate negative long term returns. The profitability progress is the general direction of Dupont Denemours' change in net profit over the period of time. It can combine multiple indicators of Dupont Denemours, 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 2022
Accumulated Other Comprehensive Income41 M44.2 M
Consolidated Income6.5 BB
Net Income6.5 BB
Net Income Common Stock6.5 BB
Net Loss Income from Discontinued Operations-4.7 B-4.8 B
Net Income to Non Controlling Interests48 M62.4 M
Operating Income2.6 B2.6 B
Preferred Dividends Income Statement Impact306 M304.2 M
Income Tax Expense392 M433.6 M
Net Income Per Employee231 K249.2 K
DuPont de Nemours, Inc. provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. DuPont de Nemours, Inc. is headquartered in Wilmington, Delaware. Dupont Denemours operates under Specialty Chemicals classification in the United States and is traded on New York Stock Exchange. It employs 28000 people.

Dupont Profitability Driver Comparison

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

Dupont Denemours Profitability Trends

Dupont Denemours profitability trend refers to the progression of profit or loss within a business. An upward trend means that Dupont Denemours' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Dupont Denemours' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Dupont Denemours Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Dupont Denemours different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Dupont Denemours in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Dupont Denemours' future profitability.

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

Dupont Denemours Pair Trading

Dupont Denemours Pair Trading Analysis

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

In addition to having Dupont Denemours 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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Continue to Investing Opportunities. Note that the Dupont Denemours information on this page should be used as a complementary analysis to other Dupont Denemours' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running Dupont Denemours price analysis, check to measure Dupont Denemours' 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 Dupont Denemours is operating at the current time. Most of Dupont Denemours' value examination focuses on studying past and present price action to predict the probability of Dupont Denemours' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Dupont Denemours' price. Additionally, you may evaluate how the addition of Dupont Denemours to your portfolios can decrease your overall portfolio volatility.
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To fully project Dupont Denemours' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Dupont Denemours 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 Dupont Denemours' income statement, its balance sheet, and the statement of cash flows.
Potential Dupont Denemours investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Dupont Denemours investors may work on each financial statement separately, they are all related. The changes in Dupont Denemours's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Dupont Denemours'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.