GrafTech International Return On Equity vs. Current Valuation
| EAF Stock | USD 2.08 0.07 3.26% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (3.26) | Current Value (3.10) | Quarterly Volatility 4.603913 |
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 Components & 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.
Quarterly Earnings Growth (0.64) | Earnings Share (1.16) | Revenue Per Share 2.104 | Quarterly Revenue Growth (0.18) | Return On Assets (0.04) |
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 Current Valuation vs. Return On Equity 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 return on equity category among its peers. It is rated below average in current valuation category among its peers . At this time, GrafTech International's Return On Equity is most likely to increase slightly in the upcoming years. 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 Current Valuation 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.
GrafTech International |
| = | -2.14 |
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.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
GrafTech International |
| = | 1.32 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
GrafTech Current Valuation vs Competition
GrafTech International is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is currently estimated at about 128.93 Billion. GrafTech International claims roughly 1.32 Billion in current valuation contributing just under 2% to equities under Industrials industry.
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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -11.5 M | -12 M | |
| Operating Income | -47.1 M | -44.7 M | |
| Income Before Tax | -273.8 M | -260.1 M | |
| Total Other Income Expense Net | -226.7 M | -215.3 M | |
| Net Loss | -255.2 M | -242.5 M | |
| Income Tax Expense | -18.5 M | -17.6 M | |
| Net Income Applicable To Common Shares | 440.4 M | 223.3 M | |
| Net Income From Continuing Ops | 12.5 M | 11.9 M | |
| Non Operating Income Net Other | 16.7 M | 17.6 M | |
| Interest Income | 4 M | 3.8 M | |
| Net Interest Income | -53.6 M | -56.2 M | |
| Change To Netincome | 10.2 M | 9.7 M | |
| Net Loss | (0.99) | (0.94) | |
| Income Quality | (0.27) | (0.25) | |
| Net Income Per E B T | 0.93 | 0.98 |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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.