Arad Investment Profit Margin vs. Operating Margin
| ARAD Stock | ILS 13,710 240.00 1.72% |
For Arad Investment profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Arad Investment to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Arad Investment Industrial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Arad Investment's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Arad Investment Industrial over time as well as its relative position and ranking within its peers.
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Arad Investment Indu Operating Margin vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Arad Investment's current stock value. Our valuation model uses many indicators to compare Arad Investment value to that of its competitors to determine the firm's financial worth. Arad Investment Industrial is number one stock in profit margin category among its peers. It also is number one stock in operating margin category among its peers reporting about 0.98 of Operating Margin per Profit Margin. The ratio of Profit Margin to Operating Margin for Arad Investment Industrial is roughly 1.02 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Arad Investment by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Arad Investment'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.Arad Operating Margin vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
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| = | 0.17 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
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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| = | 0.17 % |
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.
Arad Operating Margin Comparison
Arad Investment is currently under evaluation in operating margin category among its peers.
Arad Investment Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Arad Investment, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Arad Investment will eventually generate negative long term returns. The profitability progress is the general direction of Arad Investment's change in net profit over the period of time. It can combine multiple indicators of Arad Investment, 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.
Arad Investment Industrial Development Ltd., through its subsidiaries, engages in real estate, information technologies, and construction materials businesses in Israel, Cyprus, Greece, and the United States. Arad Investment Industrial Development Ltd. was founded in 1963 and is based in Tel Aviv, Israel. ARAD INVESTMENT is traded on Tel Aviv Stock Exchange in Israel.
Arad Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Arad Investment. 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 Arad Investment 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 Arad Investment's important profitability drivers and their relationship over time.
Use Arad Investment 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 Arad Investment 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 Arad Investment will appreciate offsetting losses from the drop in the long position's value.Arad Investment Pair Trading
Arad Investment Industrial Pair Trading Analysis
The ability to find closely correlated positions to Arad Investment could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Arad Investment 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 Arad Investment - 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 Arad Investment Industrial to buy it.
The correlation of Arad Investment 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 Arad Investment moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Arad Investment Indu 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 Arad Investment 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 Arad Investment position
In addition to having Arad Investment 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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Other Information on Investing in Arad Stock
To fully project Arad Investment's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Arad Investment Indu 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 Arad Investment's income statement, its balance sheet, and the statement of cash flows.