ABB Operating Margin vs. Cash Per Share

ABJA Stock  EUR 54.50  2.00  3.81%   
Based on the measurements of profitability obtained from ABB's financial statements, ABB may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess ABB's ability to earn profits and add value for shareholders.
For ABB profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ABB to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ABB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ABB's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ABB 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 ABB's value and its price as these two are different measures arrived at by different means. Investors typically determine if ABB is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ABB's 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.

ABB Cash Per Share vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining ABB's current stock value. Our valuation model uses many indicators to compare ABB value to that of its competitors to determine the firm's financial worth.
ABB is number one stock in operating margin category among its peers. It also is number one stock in cash per share category among its peers fabricating about  11.97  of Cash Per Share per Operating 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 ABB's earnings, one of the primary drivers of an investment's value.

ABB Cash Per Share vs. Operating Margin

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.

ABB

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.13 %
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.
Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.

ABB

Cash Per Share

 = 

Total Cash

Average Shares

 = 
1.51 X
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.

ABB Cash Per Share Comparison

ABB is currently under evaluation in cash per share category among its peers.

ABB Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in ABB, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ABB will eventually generate negative long term returns. The profitability progress is the general direction of ABB's change in net profit over the period of time. It can combine multiple indicators of ABB, 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.
ABB Ltd manufactures and sells electrification, industrial automation, and robotics and motion products for customers in utilities, industry and transport, and infrastructure worldwide. ABB Ltd was founded in 1883 and is headquartered in Zurich, Switzerland. ABB LTD operates under Diversified Industrials classification in Germany and is traded on Frankfurt Stock Exchange. It employs 147000 people.

ABB Profitability Driver Comparison

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

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

ABB Pair Trading

ABB Pair Trading Analysis

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

In addition to having ABB 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 Banks - Regional Thematic Idea Now

Banks - Regional
Banks - Regional Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Banks - Regional theme has 19 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 Banks - Regional Theme or any other thematic opportunities.
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Other Information on Investing in ABB Stock

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