Arkema SA Price To Book vs. Return On Asset
Based on the key profitability measurements obtained from Arkema SA's financial statements, Arkema SA 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 Arkema SA's ability to earn profits and add value for shareholders.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Please note, there is a significant difference between Arkema SA's value and its price as these two are different measures arrived at by different means. Investors typically determine if Arkema SA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arkema SA'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.
For Arkema SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Arkema SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Arkema SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Arkema SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Arkema SA over time as well as its relative position and ranking within its peers.
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Arkema SA Return On Asset vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Arkema SA's current stock value. Our valuation model uses many indicators to compare Arkema SA value to that of its competitors to determine the firm's financial worth. Arkema SA 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 0.08 of Return On Asset per Price To Book. The ratio of Price To Book to Return On Asset for Arkema SA is roughly 12.89 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Arkema SA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Arkema SA's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Arkema 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.
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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.
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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.
Arkema Return On Asset Comparison
Arkema SA is currently under evaluation in return on asset category among its peers.
Arkema SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Arkema SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Arkema SA will eventually generate negative long term returns. The profitability progress is the general direction of Arkema SA's change in net profit over the period of time. It can combine multiple indicators of Arkema SA, 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.
Arkema S.A. manufactures and sells specialty chemicals and advanced materials worldwide. The company was incorporated in 2003 and is headquartered in Colombes, France. Arkema S operates under Chemicals And Petrochemicals classification in France and is traded on Paris Stock Exchange. It employs 20000 people.
Arkema Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Arkema 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 Arkema 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 Arkema SA's important profitability drivers and their relationship over time.
Use Arkema 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 Arkema 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 Arkema SA will appreciate offsetting losses from the drop in the long position's value.Arkema SA Pair Trading
Arkema SA Pair Trading Analysis
The ability to find closely correlated positions to Arkema 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 Arkema 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 Arkema 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 Arkema SA to buy it.
The correlation of Arkema 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 Arkema SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Arkema 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 Arkema 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 Arkema SA position
In addition to having Arkema 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 Asset Management Thematic Idea Now
Asset Management
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Asset Management theme has 7 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 Asset Management Theme or any other thematic opportunities.
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Other Information on Investing in Arkema Stock
To fully project Arkema SA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Arkema SA 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 Arkema SA's income statement, its balance sheet, and the statement of cash flows.