Universal Insurance Return On Asset vs. Price To Sales
| 5UI Stock | EUR 21.60 0.20 0.92% |
For Universal Insurance profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Universal Insurance to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Universal Insurance Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Universal Insurance's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Universal Insurance Holdings over time as well as its relative position and ranking within its peers.
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Universal Insurance Price To Sales vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Universal Insurance's current stock value. Our valuation model uses many indicators to compare Universal Insurance value to that of its competitors to determine the firm's financial worth. Universal Insurance Holdings is rated fourth in return on asset category among its peers. It also is rated fourth in price to sales 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 Universal Insurance's earnings, one of the primary drivers of an investment's value.Universal 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.
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| = | -0.0052 |
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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| = | 0.23 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.
Universal Price To Sales Comparison
Universal Insurance is currently under evaluation in price to sales category among its peers.
Universal Insurance Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Universal Insurance, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Universal Insurance will eventually generate negative long term returns. The profitability progress is the general direction of Universal Insurance's change in net profit over the period of time. It can combine multiple indicators of Universal Insurance, 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.
Universal Insurance Holdings, Inc., together with its subsidiaries, operates as an integrated insurance holding company in the United States. Universal Insurance Holdings, Inc. was founded in 1990 and is headquartered in Fort Lauderdale, Florida. Universal Insurance operates under Insurance - Property Casualty classification in Germany and is traded on Frankfurt Stock Exchange. It employs 734 people.
Universal Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Universal Insurance. 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 Universal Insurance 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 Universal Insurance's important profitability drivers and their relationship over time.
Use Universal Insurance 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 Universal Insurance 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 Universal Insurance will appreciate offsetting losses from the drop in the long position's value.Universal Insurance Pair Trading
Universal Insurance Holdings Pair Trading Analysis
The ability to find closely correlated positions to Universal Insurance could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Universal Insurance 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 Universal Insurance - 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 Universal Insurance Holdings to buy it.
The correlation of Universal Insurance 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 Universal Insurance moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Universal Insurance 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 Universal Insurance 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 Universal Insurance position
In addition to having Universal Insurance 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 Computers Thematic Idea Now
Computers
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Computers 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 Computers Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Universal Stock
When determining whether Universal Insurance is a strong investment it is important to analyze Universal Insurance's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Universal Insurance's future performance. For an informed investment choice regarding Universal Stock, refer to the following important reports:Check out Trending Equities. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
To fully project Universal Insurance's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Universal Insurance 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 Universal Insurance's income statement, its balance sheet, and the statement of cash flows.