TopBuild Corp Profitability Analysis
TopBuild Corp Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining TopBuild Corp's current stock value. Our valuation model uses many indicators to compare TopBuild Corp value to that of its competitors to determine the firm's financial worth. TopBuild Corp is number one stock in return on equity category among its peers. It also is number one stock in return on asset category among its peers reporting about 0.41 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for TopBuild Corp is roughly 2.43 . Comparative valuation analysis is a catch-all model that can be used if you cannot value TopBuild Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for TopBuild Corp'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.TopBuild 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.
TopBuild Corp |
| = | 0.29 |
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.
TopBuild Corp |
| = | 0.12 |
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.
TopBuild Return On Asset Comparison
TopBuild Corp is currently under evaluation in return on asset category among its peers.
TopBuild Corp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in TopBuild Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, TopBuild Corp will eventually generate negative long term returns. The profitability progress is the general direction of TopBuild Corp's change in net profit over the period of time. It can combine multiple indicators of TopBuild Corp, 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.
TopBuild Corp. engages in the installation and distribution of insulation and other building products to the United States construction industry. TopBuild Corp. was incorporated in 2015 and is headquartered in Daytona Beach, Florida. TopBuild Corp operates under Building Materials classification in Mexico and is traded on Mexico Stock Exchange. It employs 10300 people.
TopBuild Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on TopBuild Corp. 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 TopBuild Corp 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 TopBuild Corp's important profitability drivers and their relationship over time.
TopBuild Corp Earnings per Share Projection vs Actual
Use TopBuild Corp 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 TopBuild Corp 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 TopBuild Corp will appreciate offsetting losses from the drop in the long position's value.TopBuild Corp Pair Trading
TopBuild Corp Pair Trading Analysis
The ability to find closely correlated positions to TopBuild Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace TopBuild Corp 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 TopBuild Corp - 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 TopBuild Corp to buy it.
The correlation of TopBuild Corp 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 TopBuild Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if TopBuild Corp 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 TopBuild Corp 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 TopBuild Corp position
In addition to having TopBuild Corp 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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Companies involved in drilling, production, and distribution of oil and gas pipelines. The Oil And Gas theme has 13 constituents at this time.
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Additional Tools for TopBuild Stock Analysis
When running TopBuild Corp's price analysis, check to measure TopBuild Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy TopBuild Corp is operating at the current time. Most of TopBuild Corp's value examination focuses on studying past and present price action to predict the probability of TopBuild Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move TopBuild Corp's price. Additionally, you may evaluate how the addition of TopBuild Corp to your portfolios can decrease your overall portfolio volatility.