Adecco Group Price To Book vs. Operating Margin

ADEN Stock  CHF 23.14  0.16  0.69%   
Considering Adecco Group's profitability and operating efficiency indicators, Adecco Group AG may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess Adecco Group's ability to earn profits and add value for shareholders.
For Adecco Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Adecco Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Adecco Group AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Adecco Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Adecco Group AG 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 Adecco Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if Adecco Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Adecco Group'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.

Adecco Group AG Operating Margin vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Adecco Group's current stock value. Our valuation model uses many indicators to compare Adecco Group value to that of its competitors to determine the firm's financial worth.
Adecco Group AG 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  0.02  of Operating Margin per Price To Book. The ratio of Price To Book to Operating Margin for Adecco Group AG is roughly  45.21 . 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 Adecco Group's earnings, one of the primary drivers of an investment's value.

Adecco 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.

Adecco Group

P/B

 = 

MV Per Share

BV Per Share

 = 
1.33 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.

Adecco Group

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.03 %
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.

Adecco Operating Margin Comparison

Adecco Group is currently under evaluation in operating margin category among its peers.

Adecco Group Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Adecco Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Adecco Group will eventually generate negative long term returns. The profitability progress is the general direction of Adecco Group's change in net profit over the period of time. It can combine multiple indicators of Adecco Group, 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.
Adecco Group AG, together with its subsidiaries, provides human resource services to businesses and organizations worldwide. Adecco Group AG was founded in 1957 and is based in Zurich, Switzerland. ADECCO N is traded on Switzerland Exchange in Switzerland.

Adecco Profitability Driver Comparison

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

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

Adecco Group Pair Trading

Adecco Group AG Pair Trading Analysis

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

In addition to having Adecco Group 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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World Allocation Funds
World Allocation Funds Theme
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Additional Tools for Adecco Stock Analysis

When running Adecco Group's price analysis, check to measure Adecco Group'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 Adecco Group is operating at the current time. Most of Adecco Group's value examination focuses on studying past and present price action to predict the probability of Adecco Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Adecco Group's price. Additionally, you may evaluate how the addition of Adecco Group to your portfolios can decrease your overall portfolio volatility.