Dine Brands Story

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DIN -- USA Stock  

USD 64.28  2.24  3.37%

Let's try to outline what's happening with Dine Brands amid unprecedented political, and economic uncertainty. On the 28th of October the company is traded for 56.49. Dine Brands Global has historical hype elasticity of -0.58. The average price elasticity to hype of competition is about -1.29. The entity is forecasted to decline in value after the next headline, with the price expected to drop to 57.18. The average volatility of media hype impact on Dine Brands stock price is way over 100%. The price depreciation on the next news is expected to be -0.95%, whereas the daily expected return is currently at 0.39 percent. The volatility of related hype on Dine Brands is about 94.33% with expected price after next announcement by competition of 55.2 Considering the 30-days investment horizon, the next forecasted press release will be in about 3 days.
Published over three weeks ago
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Will Dine Brands Global continue to grow in November?
The company's average rating is Hold from 6 analysts. Our advice module provides unbiased investment recommendation that can be used to complement current average analyst sentiment on Dine Brands Global. Our advice engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon. The company has Net Profit Margin of (8.03) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of 24.22 %, which entails that for every 100 dollars of revenue, it generated 0.24 of operating income.
The successful prediction of Dine Brands stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Dine Brands Global, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Dine Brands based on Dine Brands hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Dine Brands's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Dine Brands's related companies.

Use Technical Analysis to project Dine Brands expected Price

Dine Brands technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Dine Brands technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Dine Brands trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How Dine Brands utilizes its cash?

To perform a cash flow analysis of Dine Brands, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Dine Brands is receiving and how much cash it distributes out in a given period. The Dine Brands cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Dine Brands Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 134.23 Million

Dine Brands exotic insider transaction detected

Legal trades by Dine Brands insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Dine Brands insider trading alert for general transaction of common stock by Larry Kay, the corporate stakeholder, on 20th of November 2020. This event was filed by Dine Brands Global Inc with SEC on 2020-11-20. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Dine Brands Indicators

Dine Brands Global reported the last year's revenue of 761.51 M. Reported Net Loss for the year was (58.88 M) with profit before taxes, overhead, and interest of 382.81 M.
 2017 2018 2019 2020 (projected)
Share Based Compensation10.75 M10.55 M10.81 M10.14 M
Net Cash Flow from Operations65.73 M140.35 M155.18 M134.23 M

Deferred Revenue Breakdown

Dine Brands Deferred Revenue yearly trend continues to be quite stable with very little volatility. The value of Deferred Revenue is projected to decrease to about 66.6 M. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Dine Brands Deferred Revenue is quite stable at the moment as compared to the past year. The company's current value of Deferred Revenue is estimated at 66.6 Million
2010
2018
2019
2020
201081.43 Million
201874.69 Million
201967.03 Million
202066.6 Million

Our Dine Brands analysis suggests possible reversion in November

The coefficient of variation is down to 640.77 as of today. Dine Brands Global shows above-average downside volatility for the selected time horizon. We advise investors to inspect Dine Brands Global further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Dine Brands future alpha.

Our Bottom Line On Dine Brands Global

Whereas some other firms within the restaurants industry are still a little expensive, even after the recent corrections, Dine Brands may offer a potential longer-term growth to institutional investors. To conclude, as of the 28th of October 2020, we believe that at this point, Dine Brands is undervalued with below average odds of distress within the next 2 years. Our primary buy-hold-sell recommendation on the company is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Dine Brands Global. Please refer to our Terms of Use for any information regarding our disclosure principles.

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