New Residential EBITDA vs. Return On Equity
| 0K76 Stock | 10.90 0.13 1.21% |
For New Residential profitability analysis, we use financial ratios and fundamental drivers that measure the ability of New Residential to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well New Residential Investment utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between New Residential's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of New Residential Investment over time as well as its relative position and ranking within its peers.
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New Residential Inve Return On Equity vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining New Residential's current stock value. Our valuation model uses many indicators to compare New Residential value to that of its competitors to determine the firm's financial worth. New Residential Investment is number one stock in ebitda category among its peers. It is rated third in return on equity category among its peers . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the New Residential's earnings, one of the primary drivers of an investment's value.New Return On Equity vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
New Residential |
| = | (130.9 M) |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
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.
New Residential |
| = | 0.0776 |
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.
New Return On Equity Comparison
New Residential is currently under evaluation in return on equity category among its peers.
New Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on New Residential. 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 New Residential 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 New Residential's important profitability drivers and their relationship over time.
Use New Residential 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 New Residential 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 New Residential will appreciate offsetting losses from the drop in the long position's value.New Residential Pair Trading
New Residential Investment Pair Trading Analysis
The ability to find closely correlated positions to New Residential could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace New Residential 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 New Residential - 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 New Residential Investment to buy it.
The correlation of New Residential 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 New Residential moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if New Residential Inve 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 New Residential 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 New Residential position
In addition to having New Residential 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 Money Funds Thematic Idea Now
Money Funds
Funds or Etfs that invest most if their asset in companies from financial sector such as commercial banks, insurance companies, investment funds, and real estate. The Money Funds theme has 34 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 Money Funds Theme or any other thematic opportunities.
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Additional Tools for New Stock Analysis
When running New Residential's price analysis, check to measure New Residential's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy New Residential is operating at the current time. Most of New Residential's value examination focuses on studying past and present price action to predict the probability of New Residential's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move New Residential's price. Additionally, you may evaluate how the addition of New Residential to your portfolios can decrease your overall portfolio volatility.