Boise Cascade Return On Equity vs. Profit Margin
| BC0 Stock | EUR 137.70 0.40 0.29% |
For Boise Cascade profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Boise Cascade to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Boise Cascade utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Boise Cascade's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Boise Cascade over time as well as its relative position and ranking within its peers.
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Boise Cascade Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Boise Cascade's current stock value. Our valuation model uses many indicators to compare Boise Cascade value to that of its competitors to determine the firm's financial worth. Boise Cascade is number one stock in return on equity category among its peers. It also is number one stock in profit margin category among its peers fabricating about 0.20 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Boise Cascade is roughly 4.92 . 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 Boise Cascade's earnings, one of the primary drivers of an investment's value.Boise Profit Margin 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.
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| = | 0.5 |
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.
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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| = | 0.10 % |
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.
Boise Profit Margin Comparison
Boise Cascade is currently under evaluation in profit margin category among its peers.
Boise Cascade Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Boise Cascade, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Boise Cascade will eventually generate negative long term returns. The profitability progress is the general direction of Boise Cascade's change in net profit over the period of time. It can combine multiple indicators of Boise Cascade, 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.
Boise Cascade Company manufactures wood products and distributes building materials in the United States and Canada. The company was founded in 2004 and is headquartered in Boise, Idaho. Boise Cascade operates under Lumber Wood Production classification in Germany and is traded on Frankfurt Stock Exchange. It employs 6040 people.
Boise Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Boise Cascade. 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 Boise Cascade 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 Boise Cascade's important profitability drivers and their relationship over time.
Use Boise Cascade 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 Boise Cascade 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 Boise Cascade will appreciate offsetting losses from the drop in the long position's value.Boise Cascade Pair Trading
Boise Cascade Pair Trading Analysis
The ability to find closely correlated positions to Boise Cascade could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Boise Cascade 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 Boise Cascade - 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 Boise Cascade to buy it.
The correlation of Boise Cascade 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 Boise Cascade moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Boise Cascade 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 Boise Cascade 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 Boise Cascade position
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Other Information on Investing in Boise Stock
To fully project Boise Cascade's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Boise Cascade 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 Boise Cascade's income statement, its balance sheet, and the statement of cash flows.