BUILDERS FIRSTSOURC Net Income vs. EBITDA
| B1F Stock | EUR 173.80 0.25 0.14% |
For BUILDERS FIRSTSOURC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of BUILDERS FIRSTSOURC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well BUILDERS FIRSTSOURC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between BUILDERS FIRSTSOURC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of BUILDERS FIRSTSOURC over time as well as its relative position and ranking within its peers.
BUILDERS |
BUILDERS FIRSTSOURC EBITDA vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining BUILDERS FIRSTSOURC's current stock value. Our valuation model uses many indicators to compare BUILDERS FIRSTSOURC value to that of its competitors to determine the firm's financial worth. BUILDERS FIRSTSOURC is rated third in net income category among its peers. It also is rated third in ebitda category among its peers totaling about 1.70 of EBITDA per Net Income. 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 BUILDERS FIRSTSOURC's earnings, one of the primary drivers of an investment's value.BUILDERS EBITDA vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
BUILDERS FIRSTSOURC |
| = | 1.73 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
BUILDERS FIRSTSOURC |
| = | 2.93 B |
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.
BUILDERS EBITDA Comparison
BUILDERS FIRSTSOURC is currently under evaluation in ebitda category among its peers.
BUILDERS Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on BUILDERS FIRSTSOURC. 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 BUILDERS FIRSTSOURC 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 BUILDERS FIRSTSOURC's important profitability drivers and their relationship over time.
Use BUILDERS FIRSTSOURC 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 BUILDERS FIRSTSOURC 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 BUILDERS FIRSTSOURC will appreciate offsetting losses from the drop in the long position's value.BUILDERS FIRSTSOURC Pair Trading
BUILDERS FIRSTSOURC Pair Trading Analysis
The ability to find closely correlated positions to BUILDERS FIRSTSOURC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BUILDERS FIRSTSOURC 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 BUILDERS FIRSTSOURC - 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 BUILDERS FIRSTSOURC to buy it.
The correlation of BUILDERS FIRSTSOURC 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 BUILDERS FIRSTSOURC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if BUILDERS FIRSTSOURC 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 BUILDERS FIRSTSOURC 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 BUILDERS FIRSTSOURC position
In addition to having BUILDERS FIRSTSOURC 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 Stores Thematic Idea Now
Stores
Companies providing different types of retail and wholesale services. The Stores theme has 41 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 Stores Theme or any other thematic opportunities.
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Other Information on Investing in BUILDERS Stock
To fully project BUILDERS FIRSTSOURC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of BUILDERS FIRSTSOURC 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 BUILDERS FIRSTSOURC's income statement, its balance sheet, and the statement of cash flows.