Knowles EBITDA vs. Gross Profit

1K3 Stock  EUR 18.70  0.20  1.08%   
Based on Knowles' profitability indicators, Knowles may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Knowles' ability to earn profits and add value for shareholders.
For Knowles profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Knowles to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Knowles utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Knowles's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Knowles 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 Knowles' value and its price as these two are different measures arrived at by different means. Investors typically determine if Knowles is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Knowles' 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.

Knowles Gross Profit vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Knowles's current stock value. Our valuation model uses many indicators to compare Knowles value to that of its competitors to determine the firm's financial worth.
Knowles is rated below average in ebitda category among its peers. It is number one stock in gross profit 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 Knowles' earnings, one of the primary drivers of an investment's value.

Knowles Gross Profit 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.

Knowles

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
(360 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.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Knowles

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
308.5 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Knowles Gross Profit Comparison

Knowles is currently under evaluation in gross profit category among its peers.

Knowles Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Knowles, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Knowles will eventually generate negative long term returns. The profitability progress is the general direction of Knowles' change in net profit over the period of time. It can combine multiple indicators of Knowles, 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.
Knowles Corporation designs, manufactures, and sells micro-acoustic, audio processing, and precision device solutions for the mobile consumer electronics, communications, medical, defense, aerospace, and industrial markets worldwide. The company was founded in 1946 and is headquartered in Itasca, Illinois. KNOWLES CORP operates under Communication Equipment classification in Germany and is traded on Frankfurt Stock Exchange. It employs 8000 people.

Knowles Profitability Driver Comparison

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

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

Knowles Pair Trading

Knowles Pair Trading Analysis

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

In addition to having Knowles 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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Other Information on Investing in Knowles Stock

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