Consumers Energy Return On Asset vs. Price To Sales
| CMS-PB Preferred Stock | USD 81.80 0.60 0.74% |
For Consumers Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Consumers Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Consumers Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Consumers Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Consumers Energy over time as well as its relative position and ranking within its peers.
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Consumers Energy Price To Sales vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Consumers Energy's current stock value. Our valuation model uses many indicators to compare Consumers Energy value to that of its competitors to determine the firm's financial worth. Consumers Energy is number one stock in return on asset category among its peers. It also is number one stock in price to sales category among its peers fabricating about 30.20 of Price To Sales per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value Consumers Energy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Consumers Energy's Preferred 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.Consumers Price To Sales vs. Return On Asset
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.
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| = | 0.0313 |
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.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
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| = | 0.95 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Consumers Price To Sales Comparison
Consumers Energy is currently under evaluation in price to sales category among its peers.
Consumers Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Consumers Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Consumers Energy will eventually generate negative long term returns. The profitability progress is the general direction of Consumers Energy's change in net profit over the period of time. It can combine multiple indicators of Consumers Energy, 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.
Consumers Energy Company operates as an electric and gas utility in Michigan. Consumers Energy Company is a subsidiary of CMS Energy Corporation. CMS Energy operates under Utilities - Regulated Electric classification in USA and is traded on New York Stock Exchange. It employs 7504 people.
Consumers Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Consumers Energy. 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 Consumers Energy 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 Consumers Energy's important profitability drivers and their relationship over time.
Use Consumers Energy 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 Consumers Energy 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 Consumers Energy will appreciate offsetting losses from the drop in the long position's value.Consumers Energy Pair Trading
Consumers Energy Pair Trading Analysis
The ability to find closely correlated positions to Consumers Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Consumers Energy 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 Consumers Energy - 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 Consumers Energy to buy it.
The correlation of Consumers Energy 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 Consumers Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Consumers Energy 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 Consumers Energy 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 Consumers Energy position
In addition to having Consumers Energy 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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Companies involved in production and distribution of domestic and international beer. The Beers theme has 46 constituents at this time.
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Other Information on Investing in Consumers Preferred Stock
To fully project Consumers Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Consumers Energy 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 Consumers Energy's income statement, its balance sheet, and the statement of cash flows.