ChemoMetec Return On Equity vs. Profit Margin
| CHEMM Stock | DKK 480.80 5.00 1.03% |
For ChemoMetec profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ChemoMetec to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ChemoMetec AS utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ChemoMetec's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ChemoMetec AS over time as well as its relative position and ranking within its peers.
ChemoMetec |
ChemoMetec AS Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ChemoMetec's current stock value. Our valuation model uses many indicators to compare ChemoMetec value to that of its competitors to determine the firm's financial worth. ChemoMetec AS is number one stock in return on equity category among its peers. It also is number one stock in profit margin category among its peers fabricating about 0.80 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for ChemoMetec AS is roughly 1.25 . Comparative valuation analysis is a catch-all model that can be used if you cannot value ChemoMetec by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for ChemoMetec'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.ChemoMetec Profit Margin 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.
ChemoMetec |
| = | 0.49 |
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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
ChemoMetec |
| = | 0.39 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
ChemoMetec Profit Margin Comparison
ChemoMetec is currently under evaluation in profit margin category among its peers.
ChemoMetec Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ChemoMetec, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ChemoMetec will eventually generate negative long term returns. The profitability progress is the general direction of ChemoMetec's change in net profit over the period of time. It can combine multiple indicators of ChemoMetec, 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.
ChemoMetec AS engages in the development, production, and sale of analytical equipment for cell counting and analysis the United States, Canada, Europe, and internationally. The company was founded in 1997 and is headquartered in Allerd, Denmark. ChemoMetec operates under Medical Equipment classification in Denmark and is traded on Copenhagen Stock Exchange. It employs 155 people.
ChemoMetec Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ChemoMetec. 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 ChemoMetec 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 ChemoMetec's important profitability drivers and their relationship over time.
Use ChemoMetec 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 ChemoMetec 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 ChemoMetec will appreciate offsetting losses from the drop in the long position's value.ChemoMetec Pair Trading
ChemoMetec AS Pair Trading Analysis
The ability to find closely correlated positions to ChemoMetec could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ChemoMetec 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 ChemoMetec - 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 ChemoMetec AS to buy it.
The correlation of ChemoMetec 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 ChemoMetec moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ChemoMetec AS 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 ChemoMetec 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 ChemoMetec position
In addition to having ChemoMetec 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 ChemoMetec Stock
To fully project ChemoMetec's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ChemoMetec AS 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 ChemoMetec's income statement, its balance sheet, and the statement of cash flows.