Gyeongnam Steel Operating Margin vs. Return On Asset
| 039240 Stock | KRW 2,895 40.00 1.36% |
For Gyeongnam Steel profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Gyeongnam Steel to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Gyeongnam Steel Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Gyeongnam Steel's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Gyeongnam Steel Co over time as well as its relative position and ranking within its peers.
Gyeongnam |
Gyeongnam Steel Return On Asset vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Gyeongnam Steel's current stock value. Our valuation model uses many indicators to compare Gyeongnam Steel value to that of its competitors to determine the firm's financial worth. Gyeongnam Steel Co is rated fifth in operating margin category among its peers. It is rated fourth in return on asset category among its peers reporting about 1.29 of Return On Asset per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Gyeongnam Steel by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Gyeongnam Steel'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.Gyeongnam Return On Asset vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
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| = | 0.02 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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.
Gyeongnam Steel |
| = | 0.0224 |
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.
Gyeongnam Return On Asset Comparison
Gyeongnam Steel is rated third in return on asset category among its peers.
Gyeongnam Steel Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Gyeongnam Steel, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Gyeongnam Steel will eventually generate negative long term returns. The profitability progress is the general direction of Gyeongnam Steel's change in net profit over the period of time. It can combine multiple indicators of Gyeongnam Steel, 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.
Gyeongnam Steel Co., Ltd manufactures and sells steel products in South Korea. The company was founded in 1990 and is based in Changwon, South Korea. K Steel is traded on Korean Securities Dealers Automated Quotations in South Korea.
Gyeongnam Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Gyeongnam Steel. 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 Gyeongnam Steel 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 Gyeongnam Steel's important profitability drivers and their relationship over time.
Use Gyeongnam Steel 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 Gyeongnam Steel 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 Gyeongnam Steel will appreciate offsetting losses from the drop in the long position's value.Gyeongnam Steel Pair Trading
Gyeongnam Steel Co Pair Trading Analysis
The ability to find closely correlated positions to Gyeongnam Steel could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Gyeongnam Steel 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 Gyeongnam Steel - 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 Gyeongnam Steel Co to buy it.
The correlation of Gyeongnam Steel 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 Gyeongnam Steel moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Gyeongnam Steel 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 Gyeongnam Steel 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.Use Investing Themes to Complement your Gyeongnam Steel position
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Other Information on Investing in Gyeongnam Stock
To fully project Gyeongnam Steel's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Gyeongnam Steel 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 Gyeongnam Steel's income statement, its balance sheet, and the statement of cash flows.