ALM Equity Price To Earning vs. Operating Margin
| ALM-PREF | SEK 88.20 1.10 1.26% |
For ALM Equity profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ALM Equity to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ALM Equity AB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ALM Equity's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ALM Equity AB over time as well as its relative position and ranking within its peers.
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ALM Equity AB Operating Margin vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ALM Equity's current stock value. Our valuation model uses many indicators to compare ALM Equity value to that of its competitors to determine the firm's financial worth. ALM Equity AB is number one stock in price to earning 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 Earning. The ratio of Price To Earning to Operating Margin for ALM Equity AB is roughly 48.50 . 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 ALM Equity's earnings, one of the primary drivers of an investment's value.ALM Operating Margin vs. Price To Earning
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.
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| = | 11.18 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.
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.
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| = | 0.23 % |
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.
ALM Operating Margin Comparison
ALM Equity is currently under evaluation in operating margin category among its peers.
ALM Equity Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ALM Equity, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ALM Equity will eventually generate negative long term returns. The profitability progress is the general direction of ALM Equity's change in net profit over the period of time. It can combine multiple indicators of ALM Equity, 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.
ALM Equity AB operates as a real estate development company in Sweden. ALM Equity AB was founded in 2006 and is headquartered in Stockholm, Sweden. ALM Equity is traded on Stockholm Stock Exchange in Sweden.
ALM Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ALM Equity. 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 ALM Equity 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 ALM Equity's important profitability drivers and their relationship over time.
Use ALM Equity 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 ALM Equity 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 ALM Equity will appreciate offsetting losses from the drop in the long position's value.ALM Equity Pair Trading
ALM Equity AB Pair Trading Analysis
The ability to find closely correlated positions to ALM Equity could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ALM Equity 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 ALM Equity - 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 ALM Equity AB to buy it.
The correlation of ALM Equity 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 ALM Equity moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ALM Equity AB 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 ALM Equity 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 ALM Equity position
In addition to having ALM Equity 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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Corona Opportunity
Firms that are involved in some capacity in making products or providing services to the public to buttle the virus directly or indirectly. This also includes some defencive and contrarian stocks and ETFs that are managing to avoid the big market correction coused by coronavirus. The Corona Opportunity theme has 46 constituents at this time.
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Other Information on Investing in ALM Stock
To fully project ALM Equity's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ALM Equity AB 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 ALM Equity's income statement, its balance sheet, and the statement of cash flows.