Ebro Foods Operating Margin vs. Price To Earning
| EBRO Stock | EUR 15.98 0.04 0.25% |
For Ebro Foods profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ebro Foods to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ebro Foods utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ebro Foods's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ebro Foods over time as well as its relative position and ranking within its peers.
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Ebro Foods Price To Earning vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ebro Foods's current stock value. Our valuation model uses many indicators to compare Ebro Foods value to that of its competitors to determine the firm's financial worth. Ebro Foods is one of the top stocks in operating margin category among its peers. It also is one of the top stocks in price to earning category among its peers reporting about 166.96 of Price To Earning per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Ebro Foods by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ebro Foods' Stock. 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.Ebro Price To Earning 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.
Ebro Foods |
| = | 0.08 % |
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.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
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| = | 13.19 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Ebro Price To Earning Comparison
Ebro Foods is currently under evaluation in price to earning category among its peers.
Ebro Foods Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ebro Foods, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ebro Foods will eventually generate negative long term returns. The profitability progress is the general direction of Ebro Foods' change in net profit over the period of time. It can combine multiple indicators of Ebro Foods, 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.
Ebro Foods, S.A. produces and sells food products in Spain, rest of Europe, the United States, Canada, and internationally. Ebro Foods, S.A. was incorporated in 1998 and is based in Madrid, Spain. EBRO FOODS operates under Packaged Foods classification in Spain and is traded on Madrid SE C.A.T.S.. It employs 6462 people.
Ebro Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Ebro Foods. 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 Ebro Foods 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 Ebro Foods' important profitability drivers and their relationship over time.
Use Ebro Foods 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 Ebro Foods 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 Ebro Foods will appreciate offsetting losses from the drop in the long position's value.Ebro Foods Pair Trading
Ebro Foods Pair Trading Analysis
The ability to find closely correlated positions to Ebro Foods could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ebro Foods 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 Ebro Foods - 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 Ebro Foods to buy it.
The correlation of Ebro Foods 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 Ebro Foods moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ebro Foods 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 Ebro Foods 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 Ebro Foods position
In addition to having Ebro Foods 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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Communication Services
Companies that provide networking, telecom, and long distance services. The Communication Services theme has 45 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 Communication Services Theme or any other thematic opportunities.
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Other Information on Investing in Ebro Stock
To fully project Ebro Foods' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ebro Foods 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 Ebro Foods' income statement, its balance sheet, and the statement of cash flows.