Challenger Return On Equity vs. Total Debt
| CGF Stock | 6.09 0.01 0.16% |
For Challenger profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Challenger to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Challenger utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Challenger's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Challenger over time as well as its relative position and ranking within its peers.
Challenger |
Challenger Total Debt vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Challenger's current stock value. Our valuation model uses many indicators to compare Challenger value to that of its competitors to determine the firm's financial worth. Challenger is number one stock in return on equity category among its peers. It also is the top company in total debt category among its peers making up about 206,539,130,435 of Total Debt 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 Challenger's earnings, one of the primary drivers of an investment's value.Challenger Total Debt 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.
Challenger |
| = | 0.0345 |
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.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Challenger |
| = | 7.13 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Challenger Total Debt vs Competition
Challenger is the top company in total debt category among its peers. Total debt of Financials industry is currently estimated at about 8.48 Billion. Challenger totals roughly 7.13 Billion in total debt claiming about 84% of equities under Financials industry.
Challenger Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Challenger, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Challenger will eventually generate negative long term returns. The profitability progress is the general direction of Challenger's change in net profit over the period of time. It can combine multiple indicators of Challenger, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -18.4 M | -17.5 M | |
| Operating Income | 2.6 B | 2.8 B | |
| Income Tax Expense | 55.2 M | 58.6 M | |
| Income Before Tax | 158 M | 263.1 M | |
| Net Income Applicable To Common Shares | 330.6 M | 240 M | |
| Net Income | 134.5 M | 210 M | |
| Total Other Income Expense Net | -2.5 B | -2.4 B | |
| Net Income From Continuing Ops | 134.3 M | 212 M | |
| Net Interest Income | 489.4 M | 521.2 M | |
| Interest Income | 1.3 B | 1.3 B | |
| Change To Netincome | -10.2 M | -9.7 M |
Challenger Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Challenger. 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 Challenger 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 Challenger's important profitability drivers and their relationship over time.
Use Challenger 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 Challenger 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 Challenger will appreciate offsetting losses from the drop in the long position's value.Challenger Pair Trading
Challenger Pair Trading Analysis
The ability to find closely correlated positions to Challenger could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Challenger 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 Challenger - 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 Challenger to buy it.
The correlation of Challenger 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 Challenger moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Challenger 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 Challenger 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 Challenger position
In addition to having Challenger 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?
Run Single Stock ETFs Thematic Idea Now
Single Stock ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Single Stock ETFs theme has 99 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 Single Stock ETFs Theme or any other thematic opportunities.
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Additional Tools for Challenger Stock Analysis
When running Challenger's price analysis, check to measure Challenger'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 Challenger is operating at the current time. Most of Challenger's value examination focuses on studying past and present price action to predict the probability of Challenger's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Challenger's price. Additionally, you may evaluate how the addition of Challenger to your portfolios can decrease your overall portfolio volatility.