Cementos Bio Operating Margin vs. Return On Equity
| CEMENTOS | CLP 1,390 6.70 0.48% |
For Cementos Bio profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cementos Bio to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cementos Bio B utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cementos Bio's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cementos Bio B over time as well as its relative position and ranking within its peers.
Cementos |
Cementos Bio B Return On Equity vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cementos Bio's current stock value. Our valuation model uses many indicators to compare Cementos Bio value to that of its competitors to determine the firm's financial worth. Cementos Bio B is rated below average in operating margin category among its peers. It also is rated below average in return on equity category among its peers reporting about 7.12 of Return On Equity per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Cementos Bio by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Cementos Bio'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.Cementos Return On Equity vs. Operating Margin
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.
Cementos Bio |
| = | 0.01 % |
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.
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.
Cementos Bio |
| = | 0.0705 |
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.
Cementos Return On Equity Comparison
Cementos Bio is rated below average in return on equity category among its peers.
Cementos Bio Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cementos Bio, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cementos Bio will eventually generate negative long term returns. The profitability progress is the general direction of Cementos Bio's change in net profit over the period of time. It can combine multiple indicators of Cementos Bio, 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.
Cementos Bio Bio S.A. manufactures and sells cement in Chile and internationally. The company was founded in 1957 and is based in Providencia, Chile. CEMENTOS BIO is traded on Commodity Exchange in Exotistan.
Cementos Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cementos Bio. 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 Cementos Bio 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 Cementos Bio's important profitability drivers and their relationship over time.
Use Cementos Bio 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 Cementos Bio 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 Cementos Bio will appreciate offsetting losses from the drop in the long position's value.Cementos Bio Pair Trading
Cementos Bio B Pair Trading Analysis
The ability to find closely correlated positions to Cementos Bio could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cementos Bio 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 Cementos Bio - 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 Cementos Bio B to buy it.
The correlation of Cementos Bio 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 Cementos Bio moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cementos Bio B 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 Cementos Bio 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 Cementos Bio position
In addition to having Cementos Bio 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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Sport Products
Companies manufacturing sporting goods and accessories. The Sport Products theme has 44 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 Sport Products Theme or any other thematic opportunities.
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Other Information on Investing in Cementos Stock
To fully project Cementos Bio's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cementos Bio B 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 Cementos Bio's income statement, its balance sheet, and the statement of cash flows.