AES Return On Equity vs. Price To Earning
| AES Stock | USD 12.58 0.58 4.41% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.10008039 | Current Value 0.0951 | Quarterly Volatility 0.23455141 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.33 | 0.1977 |
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| Operating Profit Margin | 0.26 | 0.1766 |
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For AES profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AES to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well The AES utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AES's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of The AES over time as well as its relative position and ranking within its peers.
AES |
AES's Revenue Breakdown by Earning Segment
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Is Independent Power and Renewable Electricity Producers 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 AES. If investors know AES 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 AES 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 1.206 | Dividend Share 0.69 | Earnings Share 1.44 | Revenue Per Share 17.668 | Quarterly Revenue Growth (0.04) |
The market value of AES is measured differently than its book value, which is the value of AES that is recorded on the company's balance sheet. Investors also form their own opinion of AES's value that differs from its market value or its book value, called intrinsic value, which is AES'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 AES's market value can be influenced by many factors that don't directly affect AES'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 AES's value and its price as these two are different measures arrived at by different means. Investors typically determine if AES is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AES'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.
AES Price To Earning vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining AES's current stock value. Our valuation model uses many indicators to compare AES value to that of its competitors to determine the firm's financial worth. The AES is rated below average in return on equity category among its peers. It is number one stock in price to earning category among its peers . At this time, AES's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value AES 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.AES Price To Earning 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.
AES |
| = | -0.0255 |
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.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
AES |
| = | 430.16 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
AES Price To Earning Comparison
AES is currently under evaluation in price to earning category among its peers.
AES Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in AES, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AES will eventually generate negative long term returns. The profitability progress is the general direction of AES's change in net profit over the period of time. It can combine multiple indicators of AES, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -1.5 B | -1.6 B | |
| Operating Income | 2.2 B | 1.5 B | |
| Income Before Tax | 104 M | 98.8 M | |
| Total Other Income Expense Net | -2.1 B | -2 B | |
| Net Loss | -182 M | -172.9 M | |
| Income Tax Expense | 261 M | 314.5 M | |
| Net Loss | -491.4 M | -466.8 M | |
| Net Loss | -525 M | -498.8 M | |
| Non Operating Income Net Other | 129.6 M | 174.9 M | |
| Interest Income | 517 M | 348.1 M | |
| Net Interest Income | -753 M | -790.6 M | |
| Change To Netincome | 2.3 B | 2.5 B | |
| Net Income Per Share | 0.37 | 0.39 | |
| Income Quality | (16.67) | (15.84) | |
| Net Income Per E B T | 2.39 | 2.51 |
AES Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on AES. 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 AES 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 AES's important profitability drivers and their relationship over time.
Use AES 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 AES 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 AES will appreciate offsetting losses from the drop in the long position's value.AES Pair Trading
The AES Pair Trading Analysis
The ability to find closely correlated positions to AES could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AES 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 AES - 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 The AES to buy it.
The correlation of AES 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 AES moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AES 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 AES 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 AES position
In addition to having AES 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?
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Gambling
Companies that are related to providing gambling services across multiple geographical areas by investing, exploring, or producing software, hardware, and related infrastructure for running gambling operations or trading speculative assets. The Gambling theme has 38 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 Gambling Theme or any other thematic opportunities.
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Additional Tools for AES Stock Analysis
When running AES's price analysis, check to measure AES'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 AES is operating at the current time. Most of AES's value examination focuses on studying past and present price action to predict the probability of AES's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AES's price. Additionally, you may evaluate how the addition of AES to your portfolios can decrease your overall portfolio volatility.