Merry Electronics Price To Earning vs. Return On Asset
| 2439 Stock | TWD 104.50 5.00 4.57% |
For Merry Electronics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Merry Electronics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Merry Electronics Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Merry Electronics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Merry Electronics Co over time as well as its relative position and ranking within its peers.
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Merry Electronics Return On Asset vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Merry Electronics's current stock value. Our valuation model uses many indicators to compare Merry Electronics value to that of its competitors to determine the firm's financial worth. Merry Electronics Co is number one stock in price to earning category among its peers. It also is number one stock in return on asset category among its peers . The ratio of Price To Earning to Return On Asset for Merry Electronics Co is about 653.63 . 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 Merry Electronics' earnings, one of the primary drivers of an investment's value.Merry Return On Asset vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
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| = | 16.21 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.
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| = | 0.0248 |
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.
Merry Return On Asset Comparison
Merry Electronics is currently under evaluation in return on asset category among its peers.
Merry Electronics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Merry Electronics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Merry Electronics will eventually generate negative long term returns. The profitability progress is the general direction of Merry Electronics' change in net profit over the period of time. It can combine multiple indicators of Merry Electronics, 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.
Merry Electronics Co., Ltd. designs and manufactures electroacoustic, wireless, and battery products primarily in China, the United States, Switzerland, Denmark, Netherlands, and internationally. The company was founded in 1975 and is headquartered in Taichung, Taiwan. MERRY ELECTRONICS operates under Consumer Electronics classification in Taiwan and is traded on Taiwan Stock Exchange. It employs 7689 people.
Merry Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Merry Electronics. 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 Merry Electronics 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 Merry Electronics' important profitability drivers and their relationship over time.
Use Merry Electronics 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 Merry Electronics 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 Merry Electronics will appreciate offsetting losses from the drop in the long position's value.Merry Electronics Pair Trading
Merry Electronics Co Pair Trading Analysis
The ability to find closely correlated positions to Merry Electronics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Merry Electronics 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 Merry Electronics - 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 Merry Electronics Co to buy it.
The correlation of Merry Electronics 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 Merry Electronics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Merry Electronics 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 Merry Electronics 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 Merry Electronics position
In addition to having Merry Electronics 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?
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Pharmaceutical Products
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Pharmaceutical Products theme has 61 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 Pharmaceutical Products Theme or any other thematic opportunities.
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Additional Tools for Merry Stock Analysis
When running Merry Electronics' price analysis, check to measure Merry Electronics' 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 Merry Electronics is operating at the current time. Most of Merry Electronics' value examination focuses on studying past and present price action to predict the probability of Merry Electronics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Merry Electronics' price. Additionally, you may evaluate how the addition of Merry Electronics to your portfolios can decrease your overall portfolio volatility.