PennantPark Investment Net Income vs. Beta
| 12P Stock | EUR 6.32 0.01 0.16% |
For PennantPark Investment profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PennantPark Investment to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PennantPark Investment utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PennantPark Investment's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PennantPark Investment over time as well as its relative position and ranking within its peers.
PennantPark |
PennantPark Investment Beta vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining PennantPark Investment's current stock value. Our valuation model uses many indicators to compare PennantPark Investment value to that of its competitors to determine the firm's financial worth. PennantPark Investment is rated below average in net income category among its peers. It also is rated below average in beta 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 PennantPark Investment's earnings, one of the primary drivers of an investment's value.PennantPark Beta vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
PennantPark Investment |
| = | (24.74 M) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
PennantPark Investment |
| = | 0.25 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
PennantPark Beta Comparison
PennantPark Investment is currently under evaluation in beta category among its peers.
Beta Analysis
As returns on the market increase, PennantPark Investment's returns are expected to increase less than the market. However, during the bear market, the loss of holding PennantPark Investment is expected to be smaller as well.
PennantPark Investment Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in PennantPark Investment, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PennantPark Investment will eventually generate negative long term returns. The profitability progress is the general direction of PennantPark Investment's change in net profit over the period of time. It can combine multiple indicators of PennantPark Investment, 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.
PennantPark Investment Corporation specializes in direct and mezzanine investments in middle market companies. The fund may also make non-control equity and debt investments. PennantPark Investment operates under Asset Management classification in Germany and is traded on Frankfurt Stock Exchange.
PennantPark Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on PennantPark Investment. 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 PennantPark Investment 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 PennantPark Investment's important profitability drivers and their relationship over time.
Use PennantPark Investment 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 PennantPark Investment 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 PennantPark Investment will appreciate offsetting losses from the drop in the long position's value.PennantPark Investment Pair Trading
PennantPark Investment Pair Trading Analysis
The ability to find closely correlated positions to PennantPark Investment could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PennantPark Investment 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 PennantPark Investment - 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 PennantPark Investment to buy it.
The correlation of PennantPark Investment 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 PennantPark Investment moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PennantPark Investment 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 PennantPark Investment 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 PennantPark Investment position
In addition to having PennantPark Investment 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 Wireless Thematic Idea Now
Wireless
Companies providing wireless technology and communication services. The Wireless theme has 46 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 Wireless Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in PennantPark Stock
When determining whether PennantPark Investment is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if PennantPark Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Pennantpark Investment Stock. Highlighted below are key reports to facilitate an investment decision about Pennantpark Investment Stock:Check out Trending Equities. For more detail on how to invest in PennantPark Stock please use our How to Invest in PennantPark Investment guide.You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
To fully project PennantPark Investment's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of PennantPark Investment 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 PennantPark Investment's income statement, its balance sheet, and the statement of cash flows.