Relative Risk vs. Return Landscape
If you would invest 552
in DCB Financial Corp on April 25, 2013
and sell it today you would lose (17.00)
from holding DCB Financial Corp or give up 3.08%
of portfolio value over 30
days. DCB Financial Corp is generating negative expected returns and assumes 1.54% volatility on return distribution over the 30 days horizon. Simply put, 20% of equities are less volatile than DCB Financial Corp and 99% of equity instruments are likely to generate higher returns than the company over the next 30 trading days.
Daily Expected Return (%)
Assuming 30 trading days horizon, DCB Financial Corp is expected to under-perform the market. In addition to that, the company is 2.7 times more volatile than its market benchmark. It trades about -0.1 of its total potential returns per unit of risk. The S&P 500 is currently generating roughly 0.32 per unit of volatility.
DCB Financia Operating Margin
Based on recorded statements DCB Financial Corp has Operating Margin of -6.03%. This is much lower than that of sector, and significantly lower than that of Operating Margin industry, The Operating Margin for all stocks is over 1000% higher than the company.
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out 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 firm's competitors.