Daily Journal Profitability Analysis

DJCO Stock  USD 370.74  6.27  1.66%   
Taking into consideration Daily Journal's profitability measurements, Daily Journal's profitability may be sliding down. It has an above-average likelihood of reporting lower numbers next quarter. Profitability indicators assess Daily Journal's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1991-03-31
Previous Quarter
12.6 M
Current Value
15.4 M
Quarterly Volatility
10.6 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Daily Journal's Price To Sales Ratio is very stable compared to the past year. As of the 14th of June 2024, EV To Sales is likely to grow to 6.42, while Days Sales Outstanding is likely to drop 53.04. At this time, Daily Journal's Change To Netincome is very stable compared to the past year. As of the 14th of June 2024, Net Income Per Share is likely to grow to 14.72, though Net Loss is likely to grow to (64.7 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.260.27
Sufficiently Down
Slightly volatile
For Daily Journal profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Daily Journal to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Daily Journal Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Daily Journal's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Daily Journal Corp over time as well as its relative position and ranking within its peers.
  

Daily Journal's Revenue Breakdown by Earning Segment

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Is Publishing space 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 Daily Journal. If investors know Daily 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 Daily Journal 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
0.634
Earnings Share
16.13
Revenue Per Share
52.154
Quarterly Revenue Growth
0.026
Return On Assets
0.0165
The market value of Daily Journal Corp is measured differently than its book value, which is the value of Daily that is recorded on the company's balance sheet. Investors also form their own opinion of Daily Journal's value that differs from its market value or its book value, called intrinsic value, which is Daily Journal'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 Daily Journal's market value can be influenced by many factors that don't directly affect Daily Journal'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 Daily Journal's value and its price as these two are different measures arrived at by different means. Investors typically determine if Daily Journal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Daily Journal'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.

Daily Journal Corp Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Daily Journal's current stock value. Our valuation model uses many indicators to compare Daily Journal value to that of its competitors to determine the firm's financial worth.
Daily Journal Corp is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in return on asset category among its peers reporting about  0.16  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Daily Journal Corp is roughly  6.19 . At this time, Daily Journal's Return On Equity is very stable compared to the past year. 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 Daily Journal's earnings, one of the primary drivers of an investment's value.

Daily Return On Asset vs. Return On Equity

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.

Daily Journal

Return On Equity

 = 

Net Income

Total Equity

 = 
0.1
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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Daily Journal

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0165
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Daily Return On Asset Comparison

Daily Journal is currently under evaluation in return on asset category among its peers.

Daily Journal Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Daily Journal, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Daily Journal will eventually generate negative long term returns. The profitability progress is the general direction of Daily Journal's change in net profit over the period of time. It can combine multiple indicators of Daily Journal, 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 Next Year
Operating IncomeM6.3 M
Income Before Tax32.3 M33.9 M
Total Other Income Expense Net30 M31.5 M
Net Income24.7 M25.9 M
Income Tax ExpenseM6.3 M
Net Loss-68.1 M-64.7 M
Net Income From Continuing Ops24.7 M25.9 M
Non Operating Income Net Other-105.9 M-100.6 M
Interest Income6.3 M4.4 M
Net Interest Income-3.9 M-3.7 M
Change To Netincome70.3 M73.8 M
Net Income Per Share 14.02  14.72 
Income Quality 0.81  0.77 
Net Income Per E B T 0.69  0.50 

Daily Profitability Driver Comparison

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

Daily Journal Profitability Trends

Daily Journal profitability trend refers to the progression of profit or loss within a business. An upward trend means that Daily Journal's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Daily Journal's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Daily Journal Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Daily Journal different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Daily Journal in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Daily Journal's future profitability.

Use Daily Journal 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 Daily Journal 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 Daily Journal will appreciate offsetting losses from the drop in the long position's value.

Daily Journal Pair Trading

Daily Journal Corp Pair Trading Analysis

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

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Additional Information and Resources on Investing in Daily Stock

When determining whether Daily Journal Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Daily Journal's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Daily Journal Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Daily Journal Corp Stock:
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To fully project Daily Journal's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Daily Journal Corp 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 Daily Journal's income statement, its balance sheet, and the statement of cash flows.
Potential Daily Journal investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Daily Journal investors may work on each financial statement separately, they are all related. The changes in Daily Journal's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Daily Journal'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.