Akzo Nobel Current Valuation vs. Operating Margin
| AKZA Stock | EUR 55.30 0.14 0.25% |
For Akzo Nobel profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Akzo Nobel to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Akzo Nobel NV utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Akzo Nobel's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Akzo Nobel NV over time as well as its relative position and ranking within its peers.
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Akzo Nobel NV Operating Margin vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Akzo Nobel's current stock value. Our valuation model uses many indicators to compare Akzo Nobel value to that of its competitors to determine the firm's financial worth. Akzo Nobel NV is the top company in current valuation category among its peers. It also is number one stock in operating margin category among its peers . The ratio of Current Valuation to Operating Margin for Akzo Nobel NV is about 227,553,213,752 . 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 Akzo Nobel's earnings, one of the primary drivers of an investment's value.Akzo Current Valuation vs. Competition
Akzo Nobel NV is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Specialty Chemicals industry is presently estimated at about 76.71 Billion. Akzo Nobel retains roughly 15.22 Billion in current valuation claiming about 20% of equities listed under Specialty Chemicals industry.
Akzo Operating Margin vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Akzo Nobel |
| = | 15.22 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
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.
Akzo Nobel |
| = | 0.07 % |
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.
Akzo Operating Margin Comparison
Akzo Nobel is currently under evaluation in operating margin category among its peers.
Akzo Nobel Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Akzo Nobel, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Akzo Nobel will eventually generate negative long term returns. The profitability progress is the general direction of Akzo Nobel's change in net profit over the period of time. It can combine multiple indicators of Akzo Nobel, 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.
Akzo Nobel N.V. operates as a paints and coatings company worldwide. Akzo Nobel N.V. was founded in 1646 and is headquartered in Amsterdam, the Netherlands. AKZO NOBEL operates under Specialty Chemicals classification in Netherlands and is traded on Amsterdam Stock Exchange. It employs 32800 people.
Akzo Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Akzo Nobel. 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 Akzo Nobel 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 Akzo Nobel's important profitability drivers and their relationship over time.
Use Akzo Nobel 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 Akzo Nobel 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 Akzo Nobel will appreciate offsetting losses from the drop in the long position's value.Akzo Nobel Pair Trading
Akzo Nobel NV Pair Trading Analysis
The ability to find closely correlated positions to Akzo Nobel could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Akzo Nobel 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 Akzo Nobel - 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 Akzo Nobel NV to buy it.
The correlation of Akzo Nobel 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 Akzo Nobel moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Akzo Nobel NV 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 Akzo Nobel 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 Akzo Nobel position
In addition to having Akzo Nobel 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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Additional Tools for Akzo Stock Analysis
When running Akzo Nobel's price analysis, check to measure Akzo Nobel'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 Akzo Nobel is operating at the current time. Most of Akzo Nobel's value examination focuses on studying past and present price action to predict the probability of Akzo Nobel's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Akzo Nobel's price. Additionally, you may evaluate how the addition of Akzo Nobel to your portfolios can decrease your overall portfolio volatility.