Dineequity Story

DIN -  USA Stock  

USD 85.83  2.81  3.17%

As many millenniums are trying to avoid consumer cyclical space, it makes sense to outline Dineequity a little further and try to understand its current market patterns. We will analyze why Dineequity investors may still consider a stake in the business. What is the entity valuation so far in 2021? We are going to cover the stock perspective on valuation to give investors a better transparency on taking a position in it.
Published over a month ago
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Is Dineequity (NYSE:DIN) ready for a correction?
Dineequity has 2.03 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.
On a scale of 0 to 100, Dineequity holds a performance score of 9. The firm shows a Beta (market volatility) of 1.291, which means a somewhat significant risk relative to the market. Let's try to break down what Dineequity's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Dineequity will likely underperform. Although it is vital to follow Dineequity historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By reviewing Dineequity technical indicators, you can presently evaluate if the expected return of 0.38% will be sustainable into the future. Please utilizes Dineequity sortino ratio, skewness, price action indicator, as well as the relationship between the potential upside and rate of daily change to make a quick decision on whether Dineequity price patterns will revert.
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

Acquisition by Chang Vance Yuwen of 4148 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:
DIN insider trading alert for grant of stock option (right to buy) by Chang Vance Yuwen, Chief Financial Officer, on 17th of June 2021. This event was filed by Dine Brands Global Inc with SEC on 2021-06-17. 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 the case for Dineequity

The entity reported the last year's revenue of 689.27 M. Reported Net Loss for the year was (104.41 M) with profit before taxes, overhead, and interest of 261.47 M.
 2020 2021 (projected)
Long Term Debt to Equity6.368.3
Interest Coverage2.962.54

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 Margin(5.9)
EBITDA Margin0.002053
Gross Margin0.46
Profit Margin(0.15)

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 1,192,579. Further, Dineequity Average Assets is quite stable at the moment. 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 1,192,579. Further, Dineequity Average Assets is decreasing over the last 8 years.

Our perspective of the latest Dineequity slide

Potential upside is down to 5.31. It may entail a possible volatility slide. Dineequity currently demonstrates below-average downside deviation. It has Information Ratio of 0.13 and Jensen Alpha of 0.35. 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.

Our Takeaway on Dineequity Investment

Whereas other companies in the restaurants industry are either recovering or due for a correction, Dineequity may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Dineequity valuation and our trade advice on Dineequity is due to the recent market swings and your selection of investing horizon. 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 Raphi 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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