Diamond Hill Revenue vs. Return On Equity

DHIL Stock  USD 153.02  3.28  2.19%   
Taking into consideration Diamond Hill's profitability measurements, Diamond Hill's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Diamond Hill's ability to earn profits and add value for shareholders. At this time, Diamond Hill's Price To Sales Ratio is quite stable compared to the past year. Days Of Sales Outstanding is expected to rise to 55.20 this year, although the value of Operating Cash Flow Sales Ratio will most likely fall to 0.19. At this time, Diamond Hill's Total Other Income Expense Net is quite stable compared to the past year. Non Operating Income Net Other is expected to rise to about 36.8 M this year, although the value of Operating Income will most likely fall to about 26.2 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.490.9667
Way Down
Very volatile
Return On Assets0.110.1819
Way Down
Slightly volatile
Return On Equity0.230.2634
Fairly Down
Slightly volatile
For Diamond Hill profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Diamond Hill to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Diamond Hill Investment utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Diamond Hill's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Diamond Hill Investment over time as well as its relative position and ranking within its peers.
  
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Is Diamond Hill's 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 Diamond Hill. If investors know Diamond 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 Diamond Hill 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
(0.04)
Dividend Share
6
Earnings Share
14.32
Revenue Per Share
46.366
Quarterly Revenue Growth
(0.03)
The market value of Diamond Hill Investment is measured differently than its book value, which is the value of Diamond that is recorded on the company's balance sheet. Investors also form their own opinion of Diamond Hill's value that differs from its market value or its book value, called intrinsic value, which is Diamond Hill'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 Diamond Hill's market value can be influenced by many factors that don't directly affect Diamond Hill'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 Diamond Hill's value and its price as these two are different measures arrived at by different means. Investors typically determine if Diamond Hill is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Diamond Hill'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.

Diamond Hill Investment Return On Equity vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Diamond Hill's current stock value. Our valuation model uses many indicators to compare Diamond Hill value to that of its competitors to determine the firm's financial worth.
Diamond Hill Investment is rated # 2 in revenue category among related companies. It is rated # 3 in return on equity category among related companies . The ratio of Revenue to Return On Equity for Diamond Hill Investment is about  535,819,565 . At this time, Diamond Hill's Return On Equity is quite stable compared to the past year.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Diamond Hill by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Diamond Hill's 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 Diamond Hill's earnings, one of the primary drivers of an investment's value.

Diamond Revenue vs. Competition

Diamond Hill Investment is rated # 2 in revenue category among related companies. Market size based on revenue of Financials industry is currently estimated at about 32.79 Billion. Diamond Hill adds roughly 136.58 Million in revenue claiming only tiny portion of equities under Financials industry.

Diamond Return On Equity vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Diamond Hill

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
136.58 M
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
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.

Diamond Hill

Return On Equity

 = 

Net Income

Total Equity

 = 
0.25
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.

Diamond Return On Equity Comparison

Diamond Hill is currently under evaluation in return on equity category among related companies.

Diamond Hill Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Diamond Hill, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Diamond Hill will eventually generate negative long term returns. The profitability progress is the general direction of Diamond Hill's change in net profit over the period of time. It can combine multiple indicators of Diamond Hill, 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 2024
Accumulated Other Comprehensive Income-15.4 M-14.6 M
Operating Income51.1 M26.2 M
Income Before Tax58.6 M35 M
Total Other Income Expense Net7.5 M7.9 M
Net Income42.2 M21.4 M
Income Tax Expense15.5 M10.5 M
Net Income Applicable To Common Shares46.5 M31.9 M
Net Income From Continuing Ops46.5 M44.3 M
Non Operating Income Net Other35.1 M36.8 M
Interest Income 0.00  0.00 
Net Interest Income 0.00  0.00 
Change To NetincomeM9.4 M
Net Income Per E B T 0.72  0.83 

Diamond Profitability Driver Comparison

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

Use Diamond Hill 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 Diamond Hill 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 Diamond Hill will appreciate offsetting losses from the drop in the long position's value.

Diamond Hill Pair Trading

Diamond Hill Investment Pair Trading Analysis

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

In addition to having Diamond Hill 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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Energy ETFs
Energy ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Energy ETFs theme has 88 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 Energy ETFs Theme or any other thematic opportunities.
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When determining whether Diamond Hill Investment is a strong investment it is important to analyze Diamond Hill's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Diamond Hill's future performance. For an informed investment choice regarding Diamond Stock, refer to the following important reports:
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You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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