Bridgestone Current Valuation vs. Return On Asset

BRDCF Stock  USD 32.51  0.16  0.49%   
Based on the measurements of profitability obtained from Bridgestone's financial statements, Bridgestone may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Bridgestone's ability to earn profits and add value for shareholders.
For Bridgestone profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Bridgestone to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Bridgestone utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Bridgestone's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Bridgestone over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Bridgestone's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bridgestone is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bridgestone'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.

Bridgestone Return On Asset vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Bridgestone's current stock value. Our valuation model uses many indicators to compare Bridgestone value to that of its competitors to determine the firm's financial worth.
Bridgestone is the top company in current valuation category among its peers. It also is number one stock in return on asset category among its peers . The ratio of Current Valuation to Return On Asset for Bridgestone is about  472,860,178,049 . 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 Bridgestone's earnings, one of the primary drivers of an investment's value.

Bridgestone Current Valuation vs. Competition

Bridgestone is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Auto Parts industry is currently estimated at about 158.72 Billion. Bridgestone retains roughly 26.91 Billion in current valuation claiming about 17% of stocks in Auto Parts industry.

Bridgestone Return On Asset vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Bridgestone

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
26.91 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
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.

Bridgestone

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0569
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.

Bridgestone Return On Asset Comparison

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

Bridgestone Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Bridgestone, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Bridgestone will eventually generate negative long term returns. The profitability progress is the general direction of Bridgestone's change in net profit over the period of time. It can combine multiple indicators of Bridgestone, 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.
Bridgestone Corporation, together with its subsidiaries, manufactures and sells tires and rubber products. The company was founded in 1931 and is headquartered in Tokyo, Japan. Bridgestone Corp operates under Auto Parts classification in the United States and is traded on OTC Exchange. It employs 135636 people.

Bridgestone Profitability Driver Comparison

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

Learn to be your own money manager

Our tools can tell you how much better you can do entering a position in Bridgestone without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Use Investing Themes to Complement your Bridgestone position

In addition to having Bridgestone 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.

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Services Theme
Companies involved in delivering services to business or consumers across different industries and sectors. The Services theme has 30 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 Services Theme or any other thematic opportunities.
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Other Information on Investing in Bridgestone Pink Sheet

To fully project Bridgestone's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Bridgestone 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 Bridgestone's income statement, its balance sheet, and the statement of cash flows.
Potential Bridgestone investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Bridgestone investors may work on each financial statement separately, they are all related. The changes in Bridgestone's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Bridgestone'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.