Ebara Corp Return On Asset vs. Profit Margin

EBCOY Stock  USD 8.01  0.06  0.74%   
Considering Ebara Corp's profitability and operating efficiency indicators, Ebara Corp ADR may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Ebara Corp's ability to earn profits and add value for shareholders.
For Ebara Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ebara Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ebara Corp ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ebara Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ebara Corp ADR over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Ebara Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ebara Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ebara Corp'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.

Ebara Corp ADR Profit Margin vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Ebara Corp's current stock value. Our valuation model uses many indicators to compare Ebara Corp value to that of its competitors to determine the firm's financial worth.
Ebara Corp ADR is rated # 3 in return on asset category among its peers. It also is rated # 3 in profit margin category among its peers fabricating about  1.31  of Profit Margin per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value Ebara Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ebara Corp's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Ebara Profit Margin vs. Return On Asset

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.

Ebara Corp

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0532
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.
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.

Ebara Corp

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.07 %
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.

Ebara Profit Margin Comparison

Ebara Corp is currently under evaluation in profit margin category among its peers.

Ebara Corp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Ebara Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ebara Corp will eventually generate negative long term returns. The profitability progress is the general direction of Ebara Corp's change in net profit over the period of time. It can combine multiple indicators of Ebara Corp, 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.
Ebara Corporation manufactures and sells industrial machinery. Ebara Corporation was founded in 1912 and is headquartered in Tokyo, Japan. Ebara Corp operates under Specialty Industrial Machinery classification in the United States and is traded on OTC Exchange. It employs 18372 people.

Ebara Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Ebara Corp. 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 Ebara Corp 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 Ebara Corp's important profitability drivers and their relationship over time.

Use Ebara Corp 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 Ebara Corp 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 Ebara Corp will appreciate offsetting losses from the drop in the long position's value.

Ebara Corp Pair Trading

Ebara Corp ADR Pair Trading Analysis

The ability to find closely correlated positions to Ebara Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ebara Corp 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 Ebara Corp - 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 Ebara Corp ADR to buy it.
The correlation of Ebara Corp 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 Ebara Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ebara Corp ADR 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 Ebara Corp 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Ebara Corp position

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Transportation
Transportation Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Transportation theme has 61 constituents at this time.
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Additional Tools for Ebara Pink Sheet Analysis

When running Ebara Corp's price analysis, check to measure Ebara Corp's 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 Ebara Corp is operating at the current time. Most of Ebara Corp's value examination focuses on studying past and present price action to predict the probability of Ebara Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ebara Corp's price. Additionally, you may evaluate how the addition of Ebara Corp to your portfolios can decrease your overall portfolio volatility.