Alta Equipment Return On Equity vs. EBITDA
| ALTG Stock | USD 8.12 0.21 2.65% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.05945224 | Current Value 0.0624 | Quarterly Volatility 0.09531732 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.41 | 0.2702 |
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For Alta Equipment profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alta Equipment to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alta Equipment Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alta Equipment's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alta Equipment Group over time as well as its relative position and ranking within its peers.
Alta |
Alta Equipment's Revenue Breakdown by Earning Segment
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Is Trading Companies & Distributors 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 Alta Equipment. If investors know Alta 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 Alta Equipment 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 0.454 | Dividend Share 0.228 | Earnings Share (1.76) | Revenue Per Share 57.408 | Quarterly Revenue Growth (0.04) |
The market value of Alta Equipment Group is measured differently than its book value, which is the value of Alta that is recorded on the company's balance sheet. Investors also form their own opinion of Alta Equipment's value that differs from its market value or its book value, called intrinsic value, which is Alta Equipment'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 Alta Equipment's market value can be influenced by many factors that don't directly affect Alta Equipment'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 Alta Equipment's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alta Equipment is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alta Equipment'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.
Alta Equipment Group EBITDA vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Alta Equipment's current stock value. Our valuation model uses many indicators to compare Alta Equipment value to that of its competitors to determine the firm's financial worth. Alta Equipment Group is rated third in return on equity category among its peers. It is rated fourth in ebitda category among its peers . At this time, Alta Equipment's Return On Equity is most likely to slightly decrease in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Alta Equipment 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.Alta EBITDA 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.
Alta Equipment |
| = | -0.44 |
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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Alta Equipment |
| = | 187 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Alta EBITDA Comparison
Alta Equipment is currently under evaluation in ebitda category among its peers.
Alta Equipment Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Alta Equipment, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Alta Equipment will eventually generate negative long term returns. The profitability progress is the general direction of Alta Equipment's change in net profit over the period of time. It can combine multiple indicators of Alta Equipment, 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 | -1.8 M | -1.9 M | |
| Net Income Applicable To Common Shares | 5.7 M | 6 M | |
| Net Income | 8.9 M | 9.3 M | |
| Income Tax Expense | -6.4 M | -6.1 M | |
| Operating Income | 54.4 M | 57.1 M | |
| Net Income From Continuing Ops | 10.1 M | 10.6 M | |
| Income Before Tax | 2.5 M | 2.6 M | |
| Total Other Income Expense Net | -51.9 M | -49.3 M | |
| Net Interest Income | -51.3 M | -48.7 M | |
| Interest Income | 36.6 M | 22.5 M | |
| Non Operating Income Net Other | 1.8 M | 1.6 M | |
| Change To Netincome | 5.7 M | 5.1 M | |
| Net Income Per Share | 0.27 | 0.29 | |
| Income Quality | 7.17 | 7.53 | |
| Net Income Per E B T | 3.56 | 3.74 |
Alta Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Alta Equipment. 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 Alta Equipment 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 Alta Equipment's important profitability drivers and their relationship over time.
Use Alta Equipment 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 Alta Equipment 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 Alta Equipment will appreciate offsetting losses from the drop in the long position's value.Alta Equipment Pair Trading
Alta Equipment Group Pair Trading Analysis
The ability to find closely correlated positions to Alta Equipment could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alta Equipment 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 Alta Equipment - 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 Alta Equipment Group to buy it.
The correlation of Alta Equipment 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 Alta Equipment moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alta Equipment Group 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 Alta Equipment 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 Alta Equipment position
In addition to having Alta Equipment 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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Petroleum and Natural Gas
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Petroleum and Natural Gas theme has 61 constituents at this time.
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To fully project Alta Equipment's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Alta Equipment Group 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 Alta Equipment's income statement, its balance sheet, and the statement of cash flows.