AB SA Profit Margin vs. Return On Equity
| ABE Stock | 89.40 1.40 1.54% |
For AB SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AB SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AB SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AB SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AB SA over time as well as its relative position and ranking within its peers.
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AB SA Return On Equity vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining AB SA's current stock value. Our valuation model uses many indicators to compare AB SA value to that of its competitors to determine the firm's financial worth. AB SA is number one stock in profit margin category among its peers. It also is number one stock in return on equity category among its peers reporting about 13.35 of Return On Equity per Profit Margin. 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 AB SA's earnings, one of the primary drivers of an investment's value.ABE Return On Equity vs. Profit Margin
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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| = | 0.01 % |
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.
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.
AB SA |
| = | 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.
ABE Return On Equity Comparison
AB SA is currently under evaluation in return on equity category among its peers.
ABE Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on AB SA. 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 AB SA 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 AB SA's important profitability drivers and their relationship over time.
Use AB SA 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 AB SA 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 AB SA will appreciate offsetting losses from the drop in the long position's value.AB SA Pair Trading
AB SA Pair Trading Analysis
The ability to find closely correlated positions to AB SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AB SA 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 AB SA - 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 AB SA to buy it.
The correlation of AB SA 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 AB SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AB SA 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 AB SA 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 AB SA position
In addition to having AB SA 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 Rubber and Plastic Products Thematic Idea Now
Rubber and Plastic Products
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Rubber and Plastic Products theme has 27 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 Rubber and Plastic Products Theme or any other thematic opportunities.
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Additional Tools for ABE Stock Analysis
When running AB SA's price analysis, check to measure AB SA'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 AB SA is operating at the current time. Most of AB SA's value examination focuses on studying past and present price action to predict the probability of AB SA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AB SA's price. Additionally, you may evaluate how the addition of AB SA to your portfolios can decrease your overall portfolio volatility.