Ceragon Networks Return On Equity vs. Profit Margin
| CRNT Stock | USD 4.12 0.06 1.48% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.04641133 | Current Value 0.0487 | Quarterly Volatility 0.58952898 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.23 | 0.3453 |
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For Ceragon Networks profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ceragon Networks to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ceragon Networks utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ceragon Networks's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ceragon Networks over time as well as its relative position and ranking within its peers.
Ceragon |
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ceragon Networks. If investors know Ceragon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ceragon Networks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 2.444 | Earnings Share 0.23 | Revenue Per Share 4.249 | Quarterly Revenue Growth 0.115 | Return On Assets 0.0614 |
The market value of Ceragon Networks is measured differently than its book value, which is the value of Ceragon that is recorded on the company's balance sheet. Investors also form their own opinion of Ceragon Networks' value that differs from its market value or its book value, called intrinsic value, which is Ceragon Networks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ceragon Networks' market value can be influenced by many factors that don't directly affect Ceragon Networks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ceragon Networks' value and its price as these two are different measures arrived at by different means. Investors typically determine if Ceragon Networks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ceragon Networks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Ceragon Networks Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ceragon Networks's current stock value. Our valuation model uses many indicators to compare Ceragon Networks value to that of its competitors to determine the firm's financial worth. Ceragon Networks 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 0.37 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Ceragon Networks is roughly 2.69 . At this time, Ceragon Networks' Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Ceragon Networks by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Ceragon 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.
Ceragon Networks |
| = | 0.0771 |
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.
Ceragon Networks |
| = | 0.03 % |
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.
Ceragon Profit Margin Comparison
Ceragon Networks is currently under evaluation in profit margin category among its peers.
Ceragon Networks Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ceragon Networks, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ceragon Networks will eventually generate negative long term returns. The profitability progress is the general direction of Ceragon Networks' change in net profit over the period of time. It can combine multiple indicators of Ceragon Networks, 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 | -8.1 M | -7.7 M | |
| Operating Income | 21.2 M | 22.3 M | |
| Net Income | 6.2 M | 6.5 M | |
| Income Tax Expense | 6.5 M | 6.8 M | |
| Income Before Tax | 12.7 M | 13.4 M | |
| Total Other Income Expense Net | -8.5 M | -8 M | |
| Net Loss | -17.7 M | -16.8 M | |
| Net Income From Continuing Ops | 6.2 M | 6.5 M | |
| Interest Income | 93 K | 88.3 K | |
| Net Interest Income | -7.7 M | -8.1 M | |
| Change To Netincome | 3.2 M | 4 M | |
| Net Income Per Share | 0.07 | 0.08 | |
| Income Quality | 4.97 | 5.21 | |
| Net Income Per E B T | 0.49 | 0.46 |
Ceragon Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Ceragon Networks. 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 Ceragon Networks 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 Ceragon Networks' important profitability drivers and their relationship over time.
Use Ceragon Networks 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 Ceragon Networks 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 Ceragon Networks will appreciate offsetting losses from the drop in the long position's value.Ceragon Networks Pair Trading
Ceragon Networks Pair Trading Analysis
The ability to find closely correlated positions to Ceragon Networks could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ceragon Networks 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 Ceragon Networks - 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 Ceragon Networks to buy it.
The correlation of Ceragon Networks 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 Ceragon Networks moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ceragon Networks 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 Ceragon Networks 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 Ceragon Networks position
In addition to having Ceragon Networks 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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Additional Tools for Ceragon Stock Analysis
When running Ceragon Networks' price analysis, check to measure Ceragon Networks' 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 Ceragon Networks is operating at the current time. Most of Ceragon Networks' value examination focuses on studying past and present price action to predict the probability of Ceragon Networks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ceragon Networks' price. Additionally, you may evaluate how the addition of Ceragon Networks to your portfolios can decrease your overall portfolio volatility.