Carrefour Return On Equity vs. Revenue
| CAR Stock | EUR 14.58 0.09 0.62% |
For Carrefour profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Carrefour to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Carrefour SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Carrefour's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Carrefour SA over time as well as its relative position and ranking within its peers.
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Carrefour SA Revenue vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Carrefour's current stock value. Our valuation model uses many indicators to compare Carrefour value to that of its competitors to determine the firm's financial worth. Carrefour SA is number one stock in return on equity category among its peers. It also is the top company in revenue category among its peers totaling about 593,820,943,245 of Revenue per Return On Equity. 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 Carrefour's earnings, one of the primary drivers of an investment's value.Carrefour Revenue 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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| = | 0.13 |
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.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Carrefour |
| = | 74.29 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Carrefour Revenue vs Competition
Carrefour SA is the top company in revenue category among its peers. Market size based on revenue of Grocery Stores industry is currently estimated at about 300.01 Billion. Carrefour totals roughly 74.29 Billion in revenue claiming about 25% of equities under Grocery Stores industry.
Carrefour Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Carrefour, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Carrefour will eventually generate negative long term returns. The profitability progress is the general direction of Carrefour's change in net profit over the period of time. It can combine multiple indicators of Carrefour, 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.
Carrefour SA operates stores in various formats and channels in France, Spain, Italy, Belgium, Poland, Romania, Brazil, Argentina, China, and Taiwan. Carrefour SA was founded in 1959 and is based in Boulogne Billancourt, France. CARREFOUR is traded on Frankfurt Stock Exchange in Germany.
Carrefour Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Carrefour. 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 Carrefour 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 Carrefour's important profitability drivers and their relationship over time.
Use Carrefour 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 Carrefour 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 Carrefour will appreciate offsetting losses from the drop in the long position's value.Carrefour Pair Trading
Carrefour SA Pair Trading Analysis
The ability to find closely correlated positions to Carrefour could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Carrefour 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 Carrefour - 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 Carrefour SA to buy it.
The correlation of Carrefour 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 Carrefour moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Carrefour 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 Carrefour 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 Carrefour position
In addition to having Carrefour 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 Carrefour Stock
To fully project Carrefour's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Carrefour 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 Carrefour's income statement, its balance sheet, and the statement of cash flows.