Gemfields Group Return On Asset vs. Price To Sales
| 5PH Stock | EUR 0.06 0.00 0.00% |
For Gemfields Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Gemfields Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Gemfields Group Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Gemfields Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Gemfields Group Limited over time as well as its relative position and ranking within its peers.
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Gemfields Group Price To Sales vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Gemfields Group's current stock value. Our valuation model uses many indicators to compare Gemfields Group value to that of its competitors to determine the firm's financial worth. Gemfields Group Limited is rated third in return on asset category among its peers. It is rated fourth in price to sales category among its peers fabricating about 5.27 of Price To Sales per Return On Asset. 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 Gemfields Group's earnings, one of the primary drivers of an investment's value.Gemfields Price To Sales vs. Return On Asset
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.
Gemfields Group |
| = | 0.14 |
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.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
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| = | 0.73 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Gemfields Price To Sales Comparison
Gemfields Group is rated third in price to sales category among its peers.
Gemfields Group Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Gemfields Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Gemfields Group will eventually generate negative long term returns. The profitability progress is the general direction of Gemfields Group's change in net profit over the period of time. It can combine multiple indicators of Gemfields Group, 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.
Gemfields Group Limited, together with its subsidiaries, operates as a mining company. Gemfields Group Limited was founded in 2007 and is based in Saint Peter Port, Guernsey. GEMFIELDS GROUP operates under Other Precious Metals Mining classification in Germany and is traded on Frankfurt Stock Exchange.
Gemfields Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Gemfields Group. 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 Gemfields Group 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 Gemfields Group's important profitability drivers and their relationship over time.
Use Gemfields Group 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 Gemfields Group 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 Gemfields Group will appreciate offsetting losses from the drop in the long position's value.Gemfields Group Pair Trading
Gemfields Group Limited Pair Trading Analysis
The ability to find closely correlated positions to Gemfields Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Gemfields Group 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 Gemfields Group - 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 Gemfields Group Limited to buy it.
The correlation of Gemfields Group 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 Gemfields Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Gemfields Group 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 Gemfields Group 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 Gemfields Group position
In addition to having Gemfields Group 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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Other Information on Investing in Gemfields Stock
To fully project Gemfields Group's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Gemfields Group 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 Gemfields Group's income statement, its balance sheet, and the statement of cash flows.