Eche Izquierdo Return On Equity vs. Profit Margin
| EISA Stock | CLP 162.20 4.97 3.16% |
For Eche Izquierdo profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Eche Izquierdo to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Eche Izquierdo utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Eche Izquierdo's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Eche Izquierdo over time as well as its relative position and ranking within its peers.
Eche |
Eche Izquierdo Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Eche Izquierdo's current stock value. Our valuation model uses many indicators to compare Eche Izquierdo value to that of its competitors to determine the firm's financial worth. Eche Izquierdo is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in profit margin category among its peers fabricating about 0.26 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Eche Izquierdo is roughly 3.88 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Eche Izquierdo by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Eche Izquierdo's 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.Eche Profit Margin 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.
Eche Izquierdo |
| = | 0.0625 |
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.
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.
Eche Izquierdo |
| = | 0.02 % |
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.
Eche Profit Margin Comparison
Eche Izquierdo is currently under evaluation in profit margin category among its peers.
Eche Izquierdo Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Eche Izquierdo, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Eche Izquierdo will eventually generate negative long term returns. The profitability progress is the general direction of Eche Izquierdo's change in net profit over the period of time. It can combine multiple indicators of Eche Izquierdo, 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.
Echeverra Izquierdo S.A. engages in the engineering and construction activities. The company was founded in 1978 and is based in Las Condes, Chile. ECHEVERRIA IZQ is traded on Commodity Exchange in Exotistan.
Eche Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Eche Izquierdo. 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 Eche Izquierdo 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 Eche Izquierdo's important profitability drivers and their relationship over time.
Use Eche Izquierdo 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 Eche Izquierdo 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 Eche Izquierdo will appreciate offsetting losses from the drop in the long position's value.Eche Izquierdo Pair Trading
Eche Izquierdo Pair Trading Analysis
The ability to find closely correlated positions to Eche Izquierdo could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Eche Izquierdo 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 Eche Izquierdo - 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 Eche Izquierdo to buy it.
The correlation of Eche Izquierdo 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 Eche Izquierdo moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Eche Izquierdo 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 Eche Izquierdo 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 Eche Izquierdo position
In addition to having Eche Izquierdo 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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Other Information on Investing in Eche Stock
To fully project Eche Izquierdo's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Eche Izquierdo 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 Eche Izquierdo's income statement, its balance sheet, and the statement of cash flows.