Arjo AB Profit Margin vs. Price To Earning
| ARJO-B Stock | SEK 34.30 0.12 0.35% |
For Arjo AB profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Arjo AB to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Arjo AB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Arjo AB's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Arjo AB over time as well as its relative position and ranking within its peers.
Arjo |
Arjo AB Price To Earning vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Arjo AB's current stock value. Our valuation model uses many indicators to compare Arjo AB value to that of its competitors to determine the firm's financial worth. Arjo AB is number one stock in profit margin category among its peers. It also is number one stock in price to earning category among its peers reporting about 688.84 of Price To Earning per Profit Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Arjo AB by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Arjo AB'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.Arjo Price To Earning 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.
Arjo AB |
| = | 0.04 % |
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.
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.
Arjo AB |
| = | 30.86 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.
Arjo Price To Earning Comparison
Arjo AB is currently under evaluation in price to earning category among its peers.
Arjo AB Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Arjo AB, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Arjo AB will eventually generate negative long term returns. The profitability progress is the general direction of Arjo AB's change in net profit over the period of time. It can combine multiple indicators of Arjo AB, 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.
Arjo AB develops and sells medical devices and solutions for patients with reduced mobility and age-related health challenges in North America, Western Europe, and internationally. The company was founded in 1957 and is headquartered in Malmo, Sweden. Arjo AB is traded on Stockholm Stock Exchange in Sweden.
Arjo Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Arjo AB. 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 Arjo AB 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 Arjo AB's important profitability drivers and their relationship over time.
Use Arjo AB 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 Arjo AB 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 Arjo AB will appreciate offsetting losses from the drop in the long position's value.Arjo AB Pair Trading
Arjo AB Pair Trading Analysis
The ability to find closely correlated positions to Arjo AB could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Arjo AB 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 Arjo AB - 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 Arjo AB to buy it.
The correlation of Arjo AB 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 Arjo AB moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Arjo 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 Arjo AB 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 Arjo AB position
In addition to having Arjo AB 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 Printing and Publishing Thematic Idea Now
Printing and Publishing
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Printing and Publishing theme has 21 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 Printing and Publishing Theme or any other thematic opportunities.
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Other Information on Investing in Arjo Stock
To fully project Arjo AB's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Arjo 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 Arjo AB's income statement, its balance sheet, and the statement of cash flows.