Dineequity Story

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DIN -- USA Stock  

USD 92.34  0.19  0.21%

While many traders are getting carried away by overanalyzing consumer cyclical space, it is reasonable to outline Dineequity. We will evaluate if Dineequity shares are reasonably priced going into April. Is current the firm value sustainable? We will go over Dineequity valuation drivers to give you a better outlook on taking a position in it.
Published over a month ago
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Is Dineequity (NYSE:DIN) ready for a correction?
The company has 2.05 B in debt with debt to equity (D/E) ratio of 558.1, demonstrating that Dineequity may be unable to create cash to meet all of its financial commitments.
Macroaxis provides unbiased investment recommendation on Dineequity that should be used to complement current analysts and expert consensus on Dineequity. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon.
We determine the current worth of Dineequity using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Dineequity based exclusively on its fundamental and basic technical indicators. By analyzing Dineequity's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Dineequity's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Dineequity. We calculate exposure to Dineequity's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Dineequity's related companies.

Dineequity Investment Alerts

Dineequity investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Dineequity performance across your portfolios.Please check all investment alerts for Dineequity

Dineequity Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Dineequity value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Dineequity competition to find correlations between indicators driving the intrinsic value of Dineequity.

How Dineequity utilizes its cash?

To perform a cash flow analysis of Dineequity, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Dineequity is receiving and how much cash it distributes out in a given period. The Dineequity cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Dineequity 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 100.99 Million

Exercise or conversion by Richard Dahl of 15000 shares of Dineequity subject to Rule 16b-3

Legal trades by Dineequity 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:
Dineequity insider trading alert for exercise of stock option (right to buy) by Richard Dahl, the corporate stakeholder, on 15th of April 2021. This event was filed by Dine Brands Global Inc with SEC on 2021-04-15. Statement of changes in beneficial ownership - SEC Form 4. Richard Dahl currently serves as independent chairman of the board of Dineequity [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 the case for Dineequity

The latest rise in Dineequity short term price appreciation could raise concerns from institutional investors as the firm it trading at a share price of 78.77 on 763,531 in volume. The company directors and management have successfully maneuvered the firm at convenient times to take advantage of all market conditions in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.15. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Dineequity partners.
 2020 2021 (projected)
Receivables123.18 M121.5 M
Inventories10.83 M10.5 M

Margins Breakdown

Dineequity profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Dineequity itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Dineequity profit margins.
Operating Margin22.44
EBITDA Margin0.22
Gross Margin0.53
Profit Margin0.11

Dineequity Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years. The previous year's value of Dineequity Earnings Before Interest Taxes and Depreciation Amortization EBITDA was 194,818,347. Dineequity Revenue Per Employee is quite stable at the moment. Furthermore, Dineequity Average Assets is decreasing over the last 8 years. Dineequity Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years. Dineequity Revenue Per Employee is increasing over the last 8 years. Furthermore, Dineequity Average Assets is quite stable at the moment.

Our take on today Dineequity slide

Dineequity latest downside variance surges over 7.5. Dineequity currently demonstrates below-average downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.38. However, we advise investors to further question Dineequity expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Dineequity's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Dineequity's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

The Current Takeaway on Dineequity Investment

Whereas some firms under the restaurants industry are still a bit expensive, Dineequity may offer a potential longer-term growth to institutional investors. With an optimistic outlook on your 30 days horizon, it may be a good time to acquire new shares of Dineequity or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Dineequity.

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 Gabriel Shpitalnik do not own shares of Dineequity. Please refer to our Terms of Use for any information regarding our disclosure principles.

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