Spring Airlines Price To Book vs. Operating Margin

601021 Stock   57.17  1.33  2.27%   
Based on Spring Airlines' profitability indicators, Spring Airlines Co may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Spring Airlines' ability to earn profits and add value for shareholders.
For Spring Airlines profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Spring Airlines to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Spring Airlines Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Spring Airlines's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Spring Airlines Co 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 Spring Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if Spring Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Spring Airlines' 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.

Spring Airlines Operating Margin vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Spring Airlines's current stock value. Our valuation model uses many indicators to compare Spring Airlines value to that of its competitors to determine the firm's financial worth.
Spring Airlines Co is number one stock in price to book category among its peers. It also is number one stock in operating margin category among its peers reporting about  0.09  of Operating Margin per Price To Book. The ratio of Price To Book to Operating Margin for Spring Airlines Co is roughly  11.58 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Spring Airlines by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Spring Airlines' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Spring Operating Margin vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Spring Airlines

P/B

 = 

MV Per Share

BV Per Share

 = 
3.23 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Spring Airlines

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.28 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Spring Operating Margin Comparison

Spring Airlines is currently under evaluation in operating margin category among its peers.

Spring Airlines Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Spring Airlines, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Spring Airlines will eventually generate negative long term returns. The profitability progress is the general direction of Spring Airlines' change in net profit over the period of time. It can combine multiple indicators of Spring Airlines, 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.
Last ReportedProjected for Next Year
Operating Income2.9 B3.1 B
Income Before Tax2.6 B2.8 B
Net Income Applicable To Common Shares35.2 M33.4 M
Net Income2.3 B2.4 B
Income Tax Expense-19.1 M-18.2 M
Net Income From Continuing Ops2.3 B2.4 B
Total Other Income Expense Net252.4 M321 M
Net Interest Income326.7 M343 M
Interest Income363.3 M223.7 M
Change To Netincome692.6 M727.2 M

Spring Profitability Driver Comparison

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

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

Spring Airlines Pair Trading

Spring Airlines Co Pair Trading Analysis

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

In addition to having Spring Airlines 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 Spring Stock

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