Avalon Advanced Profitability Analysis

AVL Stock  CAD 0.04  0.01  20.00%   
Based on the measurements of profitability obtained from Avalon Advanced's financial statements, Avalon Advanced Materials may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in December. Profitability indicators assess Avalon Advanced's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
1996-11-30
Previous Quarter
-1.5 M
Current Value
-1.4 M
Quarterly Volatility
1.2 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Avalon Advanced's Days Sales Outstanding is very stable compared to the past year. As of the 25th of November 2024, Days Of Sales Outstanding is likely to grow to 4,442, while Price To Sales Ratio is likely to drop 1,550. At this time, Avalon Advanced's Accumulated Other Comprehensive Income is very stable compared to the past year. As of the 25th of November 2024, Interest Income is likely to grow to about 1.2 M, while Operating Income is likely to drop (3.8 M).
For Avalon Advanced profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Avalon Advanced to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Avalon Advanced Materials utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Avalon Advanced's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Avalon Advanced Materials over time as well as its relative position and ranking within its peers.
  
Check out Trending Equities.
Please note, there is a significant difference between Avalon Advanced's value and its price as these two are different measures arrived at by different means. Investors typically determine if Avalon Advanced is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Avalon Advanced'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.

Avalon Advanced Materials Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Avalon Advanced's current stock value. Our valuation model uses many indicators to compare Avalon Advanced value to that of its competitors to determine the firm's financial worth.
Avalon Advanced Materials is number one stock in return on equity category among its peers. It is rated second in return on asset category among its peers . At this time, Avalon Advanced's Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Avalon Advanced by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Avalon Advanced'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.

Avalon Return On Asset 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.

Avalon Advanced

Return On Equity

 = 

Net Income

Total Equity

 = 
-4.0E-4
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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Avalon Advanced

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.027
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Avalon Return On Asset Comparison

Avalon Advanced is currently under evaluation in return on asset category among its peers.

Avalon Advanced Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Avalon Advanced, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Avalon Advanced will eventually generate negative long term returns. The profitability progress is the general direction of Avalon Advanced's change in net profit over the period of time. It can combine multiple indicators of Avalon Advanced, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income26.9 M28.2 M
Operating Income-3.6 M-3.8 M
Income Before Tax-3.7 M-3.8 M
Total Other Income Expense Net-50 K-52.5 K
Net Loss-3 M-3.1 M
Income Tax Expense-668.6 K-635.2 K
Net Loss-4.3 M-4.5 M
Net Loss-4.5 M-4.8 M
Net Interest Income-35.4 K-37.2 K
Interest Income1.2 M1.2 M
Change To Netincome1.4 M1.5 M
Net Loss(0.01)(0.01)
Income Quality 0.71  0.51 
Net Income Per E B T 0.94  1.35 

Avalon Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Avalon Advanced. 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 Avalon Advanced 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 Avalon Advanced's important profitability drivers and their relationship over time.

Use Avalon Advanced 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 Avalon Advanced 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 Avalon Advanced will appreciate offsetting losses from the drop in the long position's value.

Avalon Advanced Pair Trading

Avalon Advanced Materials Pair Trading Analysis

The ability to find closely correlated positions to Avalon Advanced could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Avalon Advanced 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 Avalon Advanced - 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 Avalon Advanced Materials to buy it.
The correlation of Avalon Advanced 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 Avalon Advanced moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Avalon Advanced Materials 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 Avalon Advanced 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Avalon Advanced position

In addition to having Avalon Advanced 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 Small Value Funds Thematic Idea Now

Small Value Funds
Small Value Funds Theme
Funds or Etfs that invest in the undervalued stocks of small to mid-sized companies. The Small Value Funds theme has 35 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 Small Value Funds Theme or any other thematic opportunities.
View All  Next Launch

Other Information on Investing in Avalon Stock

To fully project Avalon Advanced's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Avalon Advanced Materials 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 Avalon Advanced's income statement, its balance sheet, and the statement of cash flows.
Potential Avalon Advanced investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Avalon Advanced investors may work on each financial statement separately, they are all related. The changes in Avalon Advanced's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Avalon Advanced's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.