UniCredit SpA Profit Margin vs. Return On Equity
| CRIN Stock | EUR 36.23 0.11 0.30% |
For UniCredit SpA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of UniCredit SpA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well UniCredit SpA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between UniCredit SpA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of UniCredit SpA over time as well as its relative position and ranking within its peers.
UniCredit |
UniCredit SpA Return On Equity vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining UniCredit SpA's current stock value. Our valuation model uses many indicators to compare UniCredit SpA value to that of its competitors to determine the firm's financial worth. UniCredit SpA is number one stock in profit margin category among its peers. It is rated second in return on equity category among its peers reporting about 0.29 of Return On Equity per Profit Margin. The ratio of Profit Margin to Return On Equity for UniCredit SpA is roughly 3.43 . 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 UniCredit SpA's earnings, one of the primary drivers of an investment's value.UniCredit Return On Equity vs. Profit Margin
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.
UniCredit SpA |
| = | 0.35 % |
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.
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.
UniCredit SpA |
| = | 0.1 |
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.
UniCredit Return On Equity Comparison
UniCredit SpA is currently under evaluation in return on equity category among its peers.
UniCredit SpA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in UniCredit SpA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, UniCredit SpA will eventually generate negative long term returns. The profitability progress is the general direction of UniCredit SpA's change in net profit over the period of time. It can combine multiple indicators of UniCredit SpA, 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.
The company operates through Commercial Banking Italy, Commercial Banking Germany, Commercial Banking Austria, Corporate Investment Banking, Central and Eastern Europe, and Fineco segments. UniCredit S.p.A. was founded in 1870 and is headquartered in Milan, Italy. UNICREDIT operates under Banks - Regional - Europe classification in Germany and is traded on Frankfurt Stock Exchange. It employs 86232 people.
UniCredit Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on UniCredit SpA. 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 UniCredit SpA 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 UniCredit SpA's important profitability drivers and their relationship over time.
Use UniCredit SpA 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 UniCredit SpA 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 UniCredit SpA will appreciate offsetting losses from the drop in the long position's value.UniCredit SpA Pair Trading
UniCredit SpA Pair Trading Analysis
The ability to find closely correlated positions to UniCredit SpA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace UniCredit SpA 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 UniCredit SpA - 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 UniCredit SpA to buy it.
The correlation of UniCredit SpA 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 UniCredit SpA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if UniCredit SpA 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 UniCredit SpA 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 UniCredit SpA position
In addition to having UniCredit SpA 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 Banking Thematic Idea Now
Banking
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Banking theme has 61 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 Banking Theme or any other thematic opportunities.
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Other Information on Investing in UniCredit Stock
To fully project UniCredit SpA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of UniCredit SpA 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 UniCredit SpA's income statement, its balance sheet, and the statement of cash flows.