Abacus Life Price To Book vs. Return On Asset

ABL Stock   7.55  1.16  13.32%   
Based on the measurements of profitability obtained from Abacus Life's financial statements, Abacus Life's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Abacus Life's ability to earn profits and add value for shareholders. At this time, Abacus Life's Price To Sales Ratio is quite stable compared to the past year. Days Sales Outstanding is expected to rise to 18.68 this year, although the value of Sales General And Administrative To Revenue will most likely fall to 0.20. At this time, Abacus Life's Income Tax Expense is quite stable compared to the past year. Net Income Per Share is expected to rise to 0.17 this year, although the value of Net Interest Income is projected to rise to (8.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.620.9023
Way Down
Slightly volatile
Net Profit Margin0.190.1433
Significantly Up
Slightly volatile
Pretax Profit Margin0.20.1582
Significantly Up
Slightly volatile
Return On Assets0.02720.0287
Notably Down
Slightly volatile
Return On Equity0.05510.0581
Notably Down
Pretty Stable
For Abacus Life profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Abacus Life to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Abacus Life utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Abacus Life's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Abacus Life over time as well as its relative position and ranking within its peers.
  
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Is Insurance Brokers space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Abacus Life. If investors know Abacus will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Abacus Life listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.92)
Earnings Share
(0.22)
Revenue Per Share
1.547
Quarterly Revenue Growth
0.333
Return On Assets
0.0336
The market value of Abacus Life is measured differently than its book value, which is the value of Abacus that is recorded on the company's balance sheet. Investors also form their own opinion of Abacus Life's value that differs from its market value or its book value, called intrinsic value, which is Abacus Life's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Abacus Life's market value can be influenced by many factors that don't directly affect Abacus Life's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Abacus Life's value and its price as these two are different measures arrived at by different means. Investors typically determine if Abacus Life is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Abacus Life'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.

Abacus Life Return On Asset vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Abacus Life's current stock value. Our valuation model uses many indicators to compare Abacus Life value to that of its competitors to determine the firm's financial worth.
Abacus Life is number one stock in price to book category among its peers. It also is number one stock in return on asset category among its peers reporting about  0.01  of Return On Asset per Price To Book. The ratio of Price To Book to Return On Asset for Abacus Life is roughly  75.02 . The value of Return On Assets is estimated to slide to 0.03. Comparative valuation analysis is a catch-all technique that is used if you cannot value Abacus Life by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Abacus Return On Asset 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.

Abacus Life

P/B

 = 

MV Per Share

BV Per Share

 = 
2.52 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.
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.

Abacus Life

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0336
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.

Abacus Return On Asset Comparison

Abacus Life is currently under evaluation in return on asset category among its peers.

Abacus Life Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Abacus Life, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Abacus Life will eventually generate negative long term returns. The profitability progress is the general direction of Abacus Life's change in net profit over the period of time. It can combine multiple indicators of Abacus Life, 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
Accumulated Other Comprehensive Income108.4 K103 K
Net Interest Income-9.3 M-8.8 M
Interest Income594.8 K624.5 K
Operating Income24.1 M25.3 M
Net Income From Continuing OpsM9.5 M
Income Before Tax10.5 M11 M
Total Other Income Expense Net-13.6 M-12.9 M
Net Income Applicable To Common Shares13.1 K11.6 K
Net Income9.5 M12.2 M
Income Tax Expense1.5 M1.5 M
Change To Netincome-17.8 M-18.7 M
Net Income Per Share 0.17  0.17 
Income Quality(6.78)(6.44)
Net Income Per E B T 0.91  1.06 

Abacus Profitability Driver Comparison

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

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

Abacus Life Pair Trading

Abacus Life Pair Trading Analysis

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

In addition to having Abacus Life 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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When determining whether Abacus Life is a strong investment it is important to analyze Abacus Life'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 Abacus Life's future performance. For an informed investment choice regarding Abacus Stock, refer to the following important reports:
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For more information on how to buy Abacus Stock please use our How to buy in Abacus Stock guide.
You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
To fully project Abacus Life's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Abacus Life 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 Abacus Life's income statement, its balance sheet, and the statement of cash flows.
Potential Abacus Life investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Abacus Life investors may work on each financial statement separately, they are all related. The changes in Abacus Life's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Abacus Life'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.