Largo Resources Stock Return On Equity
| LGO Stock | USD 2.17 0.10 4.83% |
Largo Resources fundamentals help investors to digest information that contributes to Largo Resources' financial success or failures. It also enables traders to predict the movement of Largo Stock. The fundamental analysis module provides a way to measure Largo Resources' 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 Largo Resources stock.
| Last Reported | Projected for Next Year | ||
| Return On Equity | (0.12) | (0.13) |
Largo | Return On Equity |
Largo Resources Company Return On Equity Analysis
Largo Resources' 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 Largo Resources Return On Equity | -0.22 |
Most of Largo Resources' 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, Largo Resources is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Largo Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for Largo Resources is extremely important. It helps to project a fair market value of Largo Stock properly, considering its historical fundamentals such as Return On Equity. Since Largo Resources' 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 Largo Resources' 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 Largo Resources' 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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Largo Total Stockholder Equity
Total Stockholder Equity |
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Based on the latest financial disclosure, Largo Resources has a Return On Equity of -0.2199. This is 124.16% lower than that of the Metals & Mining sector and significantly lower than that of the Materials industry. The return on equity for all United States stocks is 29.06% lower than that of the firm.
Largo Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Largo Resources' 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 Largo Resources could also be used in its relative valuation, which is a method of valuing Largo Resources by comparing valuation metrics of similar companies.Largo Resources is currently under evaluation in return on equity category among its peers.
Largo Resources ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Largo Resources' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Largo Resources' managers, analysts, and investors.Environmental | Governance | Social |
Largo Fundamentals
| Return On Equity | -0.22 | |||
| Return On Asset | -0.08 | |||
| Profit Margin | (0.34) % | |||
| Operating Margin | (0.36) % | |||
| Current Valuation | 203.3 M | |||
| Shares Outstanding | 64.11 M | |||
| Shares Owned By Insiders | 0.18 % | |||
| Shares Owned By Institutions | 64.73 % | |||
| Number Of Shares Shorted | 575.6 K | |||
| Price To Earning | 24.13 X | |||
| Price To Book | 0.72 X | |||
| Price To Sales | 0.97 X | |||
| Revenue | 198.68 M | |||
| Gross Profit | 59.53 M | |||
| EBITDA | 3.82 M | |||
| Net Income | (30.9 M) | |||
| Cash And Equivalents | 62.71 M | |||
| Cash Per Share | 0.98 X | |||
| Total Debt | 76.53 M | |||
| Debt To Equity | 0.06 % | |||
| Current Ratio | 2.96 X | |||
| Book Value Per Share | 3.02 X | |||
| Cash Flow From Operations | 16.44 M | |||
| Short Ratio | 2.70 X | |||
| Earnings Per Share | (0.76) X | |||
| Target Price | 4.2 | |||
| Number Of Employees | 533 | |||
| Beta | 2.08 | |||
| Market Capitalization | 140.04 M | |||
| Total Asset | 396.39 M | |||
| Retained Earnings | (77.25 M) | |||
| Working Capital | 94.67 M | |||
| Net Asset | 396.39 M |
About Largo Resources Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Largo Resources's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Largo Resources using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Largo Resources 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 Largo Resources
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 Largo Resources 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 Largo Resources will appreciate offsetting losses from the drop in the long position's value.Moving together with Largo Stock
Moving against Largo Stock
The ability to find closely correlated positions to Largo Resources could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Largo Resources 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 Largo Resources - 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 Largo Resources to buy it.
The correlation of Largo Resources 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 Largo Resources moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Largo Resources 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 Largo Resources 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.Check out Largo Resources Piotroski F Score and Largo Resources Altman Z Score analysis. To learn how to invest in Largo Stock, please use our How to Invest in Largo Resources guide.You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Is Diversified Metals & Mining 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 Largo Resources. If investors know Largo 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 Largo Resources 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 1.153 | Earnings Share (0.76) | Revenue Per Share 2.26 | Quarterly Revenue Growth (0.32) | Return On Assets (0.08) |
The market value of Largo Resources is measured differently than its book value, which is the value of Largo that is recorded on the company's balance sheet. Investors also form their own opinion of Largo Resources' value that differs from its market value or its book value, called intrinsic value, which is Largo Resources' 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 Largo Resources' market value can be influenced by many factors that don't directly affect Largo Resources' 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 Largo Resources' value and its price as these two are different measures arrived at by different means. Investors typically determine if Largo Resources is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Largo Resources' 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.