BNP Paribas Return On Asset vs. Operating Margin
| BNP Stock | EUR 56.64 0.50 0.89% |
For BNP Paribas profitability analysis, we use financial ratios and fundamental drivers that measure the ability of BNP Paribas to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well BNP Paribas SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between BNP Paribas's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of BNP Paribas SA over time as well as its relative position and ranking within its peers.
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BNP Paribas SA Operating Margin vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining BNP Paribas's current stock value. Our valuation model uses many indicators to compare BNP Paribas value to that of its competitors to determine the firm's financial worth. BNP Paribas SA is number one stock in return on asset category among its peers. It also is number one stock in operating margin category among its peers reporting about 77.32 of Operating Margin per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value BNP Paribas by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for BNP Paribas' 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.BNP Operating Margin vs. Return On Asset
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.
BNP Paribas |
| = | 0.0037 |
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.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
BNP Paribas |
| = | 0.29 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
BNP Operating Margin Comparison
BNP Paribas is currently under evaluation in operating margin category among its peers.
BNP Paribas Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in BNP Paribas, profitability is also one of the essential criteria for including it into their portfolios because, without profit, BNP Paribas will eventually generate negative long term returns. The profitability progress is the general direction of BNP Paribas' change in net profit over the period of time. It can combine multiple indicators of BNP Paribas, 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.
BNP Paribas SA provides a range of banking and financial services in Europe, North America, Asia Pacific, and internationally. BNP Paribas SA was founded in 1822 and is headquartered in Paris, France. BNP PARIBAS operates under Banking classification in France and is traded on Paris Stock Exchange. It employs 190000 people.
BNP Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on BNP Paribas. 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 BNP Paribas 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 BNP Paribas' important profitability drivers and their relationship over time.
Use BNP Paribas 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 BNP Paribas 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 BNP Paribas will appreciate offsetting losses from the drop in the long position's value.BNP Paribas Pair Trading
BNP Paribas SA Pair Trading Analysis
The ability to find closely correlated positions to BNP Paribas could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BNP Paribas 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 BNP Paribas - 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 BNP Paribas SA to buy it.
The correlation of BNP Paribas 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 BNP Paribas moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if BNP Paribas SA 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 BNP Paribas 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 BNP Paribas position
In addition to having BNP Paribas 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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Other Information on Investing in BNP Stock
To fully project BNP Paribas' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of BNP Paribas SA 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 BNP Paribas' income statement, its balance sheet, and the statement of cash flows.