Dril Quip Operating Margin vs. Return On Equity
| DRQDelisted Stock | USD 15.88 0.43 2.78% |
For Dril Quip profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dril Quip to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dril Quip utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dril Quip's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dril Quip over time as well as its relative position and ranking within its peers.
Dril |
Dril Quip Return On Equity vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Dril Quip's current stock value. Our valuation model uses many indicators to compare Dril Quip value to that of its competitors to determine the firm's financial worth. Dril Quip is rated below average in operating margin category among its peers. It is rated below average in return on equity category among its peers . Comparative valuation analysis is a catch-all technique that is used if you cannot value Dril Quip 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.Dril Return On Equity vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Dril Quip |
| = | 0.03 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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.
Dril Quip |
| = | -0.0312 |
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.
Dril Return On Equity Comparison
Dril Quip is currently under evaluation in return on equity category among its peers.
Dril Quip Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Dril Quip, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dril Quip will eventually generate negative long term returns. The profitability progress is the general direction of Dril Quip's change in net profit over the period of time. It can combine multiple indicators of Dril Quip, 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.
Dril-Quip, Inc., together with its subsidiaries, designs, manufactures, sells, and services engineered drilling and production equipment for use in deepwater, harsh environment, and severe service applications worldwide. The company was founded in 1981 and is headquartered in Houston, Texas. Dril Quip operates under Oil Gas Equipment Services classification in the United States and is traded on New York Stock Exchange. It employs 1342 people.
Dril Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Dril Quip. 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 Dril Quip 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 Dril Quip's important profitability drivers and their relationship over time.
Use Dril Quip 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 Dril Quip 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 Dril Quip will appreciate offsetting losses from the drop in the long position's value.Dril Quip Pair Trading
Dril Quip Pair Trading Analysis
The ability to find closely correlated positions to Dril Quip could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dril Quip 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 Dril Quip - 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 Dril Quip to buy it.
The correlation of Dril Quip 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 Dril Quip moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dril Quip 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 Dril Quip 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 Dril Quip position
In addition to having Dril Quip 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 Tech Growth Thematic Idea Now
Tech Growth
Instruments that are typically traded at high earnings multiples compared to their competitors and other sectors and have been known to drive market cycles frequently. The Tech Growth theme has 66 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 Tech Growth Theme or any other thematic opportunities.
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Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Consideration for investing in Dril Stock
If you are still planning to invest in Dril Quip check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Dril Quip's history and understand the potential risks before investing.
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