Africa Oil Corp Stock Return On Equity
| AOI Stock | CAD 2.07 0.04 1.97% |
Africa Oil Corp fundamentals help investors to digest information that contributes to Africa Oil's financial success or failures. It also enables traders to predict the movement of Africa Stock. The fundamental analysis module provides a way to measure Africa Oil's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Africa Oil stock.
| Last Reported | Projected for Next Year |
Africa | Return On Equity |
Africa Oil Corp Company Return On Equity Analysis
Africa Oil's 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.
Current Africa Oil Return On Equity | -0.0422 |
Most of Africa Oil's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Africa Oil Corp is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Africa Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for Africa Oil is extremely important. It helps to project a fair market value of Africa Stock properly, considering its historical fundamentals such as Return On Equity. Since Africa Oil's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Africa Oil's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Africa Oil's interrelated accounts and indicators.
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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.
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Africa Total Stockholder Equity
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Based on the latest financial disclosure, Africa Oil Corp has a Return On Equity of -0.0422. This is 97.87% lower than that of the Oil, Gas & Consumable Fuels sector and 102.37% lower than that of the Energy industry. The return on equity for all Canada stocks is 86.39% lower than that of the firm.
Africa Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Africa Oil's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Africa Oil could also be used in its relative valuation, which is a method of valuing Africa Oil by comparing valuation metrics of similar companies.Africa Oil is currently under evaluation in return on equity category among its peers.
Africa Oil Current Valuation Drivers
We derive many important indicators used in calculating different scores of Africa Oil from analyzing Africa Oil's financial statements. These drivers represent accounts that assess Africa Oil's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Africa Oil's important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 424.1M | 418.4M | 669.8M | 871.4M | 908.4M | 953.8M | |
| Enterprise Value | 97.9M | 521.3M | 611.3M | 672.1M | 676.4M | 710.2M |
Africa Fundamentals
| Return On Equity | -0.0422 | ||||
| Return On Asset | -0.0186 | ||||
| Operating Margin | (1.07) % | ||||
| Current Valuation | 731.3 M | ||||
| Shares Outstanding | 442.84 M | ||||
| Shares Owned By Insiders | 15.57 % | ||||
| Shares Owned By Institutions | 15.34 % | ||||
| Number Of Shares Shorted | 1.04 M | ||||
| Price To Earning | (38.75) X | ||||
| Price To Book | 1.20 X | ||||
| Price To Sales | 6.16 X | ||||
| Gross Profit | 138.4 M | ||||
| EBITDA | (31.9 K) | ||||
| Net Income | 87.1 M | ||||
| Cash And Equivalents | 199.3 M | ||||
| Cash Per Share | 0.08 X | ||||
| Total Debt | 71.6 M | ||||
| Debt To Equity | 0.30 % | ||||
| Current Ratio | 1.93 X | ||||
| Book Value Per Share | 1.93 X | ||||
| Cash Flow From Operations | (53.3 M) | ||||
| Short Ratio | 2.61 X | ||||
| Earnings Per Share | (1.15) X | ||||
| Price To Earnings To Growth | 1.46 X | ||||
| Target Price | 2.19 | ||||
| Number Of Employees | 23 | ||||
| Beta | 1.27 | ||||
| Market Capitalization | 916.68 M | ||||
| Total Asset | 966.2 M | ||||
| Retained Earnings | (432.3 M) | ||||
| Working Capital | 214.7 M | ||||
| Current Asset | 105.83 M | ||||
| Current Liabilities | 56.31 M | ||||
| Annual Yield | 0.04 % | ||||
| Net Asset | 966.2 M |
About Africa Oil Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Africa Oil Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Africa Oil using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Africa Oil Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Africa Oil
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 Africa Oil 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 Africa Oil will appreciate offsetting losses from the drop in the long position's value.Moving against Africa Stock
| 0.62 | PIC-A | Premium Income Split | PairCorr |
| 0.47 | ENB-PFU | Enbridge Pref L | PairCorr |
| 0.35 | SAGE | Sage Potash Corp | PairCorr |
| 0.31 | ENB-PFV | Enbridge Pref 5 | PairCorr |
The ability to find closely correlated positions to Africa Oil could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Africa Oil 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 Africa Oil - 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 Africa Oil Corp to buy it.
The correlation of Africa Oil 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 Africa Oil moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Africa Oil 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 Africa Oil 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.Other Information on Investing in Africa Stock
Africa Oil financial ratios help investors to determine whether Africa Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Africa with respect to the benefits of owning Africa Oil security.