Wistron NeWeb Return On Equity vs. Profit Margin
| 6285 Stock | TWD 113.50 0.50 0.44% |
For Wistron NeWeb profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Wistron NeWeb to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Wistron NeWeb Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Wistron NeWeb's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Wistron NeWeb Corp over time as well as its relative position and ranking within its peers.
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Wistron NeWeb Corp Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Wistron NeWeb's current stock value. Our valuation model uses many indicators to compare Wistron NeWeb value to that of its competitors to determine the firm's financial worth. Wistron NeWeb Corp is number one stock in return on equity category among its peers. It also is number one stock in profit margin category among its peers fabricating about 0.21 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Wistron NeWeb Corp is roughly 4.84 . 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 Wistron NeWeb's earnings, one of the primary drivers of an investment's value.Wistron Profit Margin vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.14 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
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| = | 0.03 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Wistron Profit Margin Comparison
Wistron NeWeb is currently under evaluation in profit margin category among its peers.
Wistron NeWeb Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Wistron NeWeb, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Wistron NeWeb will eventually generate negative long term returns. The profitability progress is the general direction of Wistron NeWeb's change in net profit over the period of time. It can combine multiple indicators of Wistron NeWeb, 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.
Wistron NeWeb Corporation researches, develops, produces, and sells communications products worldwide. Wistron NeWeb Corporation was founded in 1996 and is headquartered in Hsinchu, Taiwan. WISTRON NEWEB operates under Communication Equipment classification in Taiwan and is traded on Taiwan Stock Exchange.
Wistron Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Wistron NeWeb. 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 Wistron NeWeb 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 Wistron NeWeb's important profitability drivers and their relationship over time.
Use Wistron NeWeb 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 Wistron NeWeb 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 Wistron NeWeb will appreciate offsetting losses from the drop in the long position's value.Wistron NeWeb Pair Trading
Wistron NeWeb Corp Pair Trading Analysis
The ability to find closely correlated positions to Wistron NeWeb could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Wistron NeWeb 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 Wistron NeWeb - 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 Wistron NeWeb Corp to buy it.
The correlation of Wistron NeWeb 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 Wistron NeWeb moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Wistron NeWeb Corp 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 Wistron NeWeb 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 Wistron NeWeb position
In addition to having Wistron NeWeb 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 Medical Equipment Thematic Idea Now
Medical Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Medical Equipment 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 Medical Equipment Theme or any other thematic opportunities.
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Additional Tools for Wistron Stock Analysis
When running Wistron NeWeb's price analysis, check to measure Wistron NeWeb's 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 Wistron NeWeb is operating at the current time. Most of Wistron NeWeb's value examination focuses on studying past and present price action to predict the probability of Wistron NeWeb's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Wistron NeWeb's price. Additionally, you may evaluate how the addition of Wistron NeWeb to your portfolios can decrease your overall portfolio volatility.