Union Materials Return On Equity vs. Price To Book
| 047400 Stock | 2,390 40.00 1.65% |
For Union Materials profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Union Materials to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Union Materials Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Union Materials's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Union Materials Corp over time as well as its relative position and ranking within its peers.
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Union Materials Corp Price To Book vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Union Materials's current stock value. Our valuation model uses many indicators to compare Union Materials value to that of its competitors to determine the firm's financial worth. Union Materials Corp is rated fourth in return on equity category among its peers. It is number one stock in price to book category among its peers fabricating about 23.54 of Price To Book per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Union Materials by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Union Materials' 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.Union Price To Book 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.
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| = | 0.0554 |
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.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Union Materials |
| = | 1.30 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Union Price To Book Comparison
Union Materials is currently under evaluation in price to book category among its peers.
Union Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Union Materials. 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 Union Materials 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 Union Materials' important profitability drivers and their relationship over time.
Use Union Materials 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 Union Materials 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 Union Materials will appreciate offsetting losses from the drop in the long position's value.Union Materials Pair Trading
Union Materials Corp Pair Trading Analysis
The ability to find closely correlated positions to Union Materials could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Union Materials 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 Union Materials - 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 Union Materials Corp to buy it.
The correlation of Union Materials 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 Union Materials moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Union Materials 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 Union Materials 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 Union Materials position
In addition to having Union Materials 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.Did You Try This Idea?
Run Currency Funds Thematic Idea Now
Currency Funds
Funds or Etfs investing in a single currency or combination of currencies from different countries in order to replicate respective foreign exchange markets. The Currency Funds theme has 45 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 Currency Funds Theme or any other thematic opportunities.
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Other Information on Investing in Union Stock
To fully project Union Materials' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Union Materials 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 Union Materials' income statement, its balance sheet, and the statement of cash flows.