Western Metal Return On Equity vs. Book Value Per Share

002149 Stock   16.04  0.19  1.20%   
Taking into consideration Western Metal's profitability measurements, Western Metal Materials may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess Western Metal's ability to earn profits and add value for shareholders.
For Western Metal profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Western Metal to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Western Metal Materials utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Western Metal's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Western Metal Materials over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Western Metal's value and its price as these two are different measures arrived at by different means. Investors typically determine if Western Metal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Western Metal'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.

Western Metal Materials Book Value Per Share vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Western Metal's current stock value. Our valuation model uses many indicators to compare Western Metal value to that of its competitors to determine the firm's financial worth.
Western Metal Materials is rated below average in return on equity category among its peers. It is rated below average in book value per share category among its peers creating about  92.12  of Book Value Per Share per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Western Metal by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Western Metal's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Western Book Value Per Share 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.

Western Metal

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0656
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.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.

Western Metal

Book Value per Share

 = 

Common Equity

Average Shares

 = 
6.04 X
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.

Western Book Value Per Share Comparison

Western Metal is currently under evaluation in book value per share category among its peers.

Western Metal Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Western Metal, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Western Metal will eventually generate negative long term returns. The profitability progress is the general direction of Western Metal's change in net profit over the period of time. It can combine multiple indicators of Western Metal, 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
Net Income Applicable To Common Shares153 M160.7 M
Net Income196.2 M206 M
Operating Income353.1 M370.8 M
Income Before Tax306 M321.3 M
Income Tax Expense7.1 M7.9 M
Net Income From Continuing Ops280 M294 M
Total Other Income Expense Net-1.1 M-1 M
Net Interest Income-44 M-46.2 M
Interest Income5.1 M4.1 M
Change To Netincome135.1 M122.1 M

Western Profitability Driver Comparison

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

Use Western Metal 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 Western Metal 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 Western Metal will appreciate offsetting losses from the drop in the long position's value.

Western Metal Pair Trading

Western Metal Materials Pair Trading Analysis

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

Use Investing Themes to Complement your Western Metal position

In addition to having Western Metal in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Cryptocurrency
Cryptocurrency Theme
Dynamically computed list of top cryptocurrencies sorted bymarket capitalization. The Cryptocurrency theme has 50 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Cryptocurrency Theme or any other thematic opportunities.
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Other Information on Investing in Western Stock

To fully project Western Metal's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Western Metal Materials 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 Western Metal's income statement, its balance sheet, and the statement of cash flows.
Potential Western Metal investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Western Metal investors may work on each financial statement separately, they are all related. The changes in Western Metal's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Western Metal'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.