DSW Profit Margin vs. Beta

DSW -- USA Stock  

USD 26.10  0.50  1.95%

The Drivers Module shows relationships between DSW's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of DSW over time as well as its relative position and ranking within its peers. Additionally see Investing Opportunities

DSW Beta vs. Profit Margin Fundamental Analysis

DSW is rated below average in profit margin category among related companies. It is rated below average in beta category among related companies totaling about  0.18  of Beta per Profit Margin. The ratio of Profit Margin to Beta for DSW is roughly  5.58 
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
DSW 
Profit Margin 
 = 
Net Income 
Revenue 
X
100 
=
2.40 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of financial instrument to the financial market in which this instrument is traded. For example if Beta of equity is 2, it will be expected to significantly outperform market when market is going up and significantly underperform when market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns during over time.
DSW 
Beta 
 = 
Covariance 
Variance 
=
0.43
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

DSW Beta Comparison

  Beta 
      DSW Comparables 
DSW is rated # 5 in beta category among related companies.
  Profit Margin 
      DSW Comparables 
DSW is rated below average in profit margin category among related companies.

Beta Analysis

As returns on market increase, DSW returns are expected to increase less than the market. However during bear market, the loss on holding DSW will be expected to be smaller as well.