GrafTech International Net Income vs. Return On Asset
| EAF Stock | USD 2.03 0.08 3.79% |
For GrafTech International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of GrafTech International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well GrafTech International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between GrafTech International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of GrafTech International over time as well as its relative position and ranking within its peers.
GrafTech |
Is Electrical 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 GrafTech International. If investors know GrafTech 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 GrafTech International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of GrafTech International is measured differently than its book value, which is the value of GrafTech that is recorded on the company's balance sheet. Investors also form their own opinion of GrafTech International's value that differs from its market value or its book value, called intrinsic value, which is GrafTech International's 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 GrafTech International's market value can be influenced by many factors that don't directly affect GrafTech International's 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 GrafTech International's value and its price as these two are different measures arrived at by different means. Investors typically determine if GrafTech International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GrafTech International's 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.
GrafTech International Return On Asset vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining GrafTech International's current stock value. Our valuation model uses many indicators to compare GrafTech International value to that of its competitors to determine the firm's financial worth. GrafTech International is rated below average in net income category among its peers. It is rated below average in return on asset category among its peers . Comparative valuation analysis is a catch-all technique that is used if you cannot value GrafTech International 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.GrafTech Return On Asset vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
GrafTech International |
| = | (255.25 M) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
GrafTech International |
| = | -0.0404 |
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.
GrafTech Return On Asset Comparison
GrafTech International is currently under evaluation in return on asset category among its peers.
GrafTech International Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in GrafTech International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, GrafTech International will eventually generate negative long term returns. The profitability progress is the general direction of GrafTech International's change in net profit over the period of time. It can combine multiple indicators of GrafTech International, 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.
GrafTech International Ltd. research, develops, manufactures, and sells graphite and carbon-based solutions worldwide. GrafTech International Ltd. was founded in 1886 and is headquartered in Brooklyn Heights, Ohio. Graftech International operates under Electrical Equipment Parts classification in the United States and is traded on New York Stock Exchange. It employs 1353 people.
GrafTech Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on GrafTech International. 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 GrafTech International 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 GrafTech International's important profitability drivers and their relationship over time.
Use GrafTech International 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 GrafTech International 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 GrafTech International will appreciate offsetting losses from the drop in the long position's value.GrafTech International Pair Trading
GrafTech International Pair Trading Analysis
The ability to find closely correlated positions to GrafTech International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace GrafTech International 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 GrafTech International - 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 GrafTech International to buy it.
The correlation of GrafTech International 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 GrafTech International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if GrafTech International 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 GrafTech International 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 GrafTech International position
In addition to having GrafTech International 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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Check out Investing Opportunities. For more detail on how to invest in GrafTech Stock please use our How to Invest in GrafTech International guide.You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
To fully project GrafTech International's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of GrafTech International 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 GrafTech International's income statement, its balance sheet, and the statement of cash flows.