Electrosteel Castings Operating Margin vs. Book Value Per Share
| ELECTCAST | 155.47 4.45 2.78% |
For Electrosteel Castings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Electrosteel Castings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Electrosteel Castings Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Electrosteel Castings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Electrosteel Castings Limited over time as well as its relative position and ranking within its peers.
Electrosteel |
Electrosteel Castings Book Value Per Share vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Electrosteel Castings's current stock value. Our valuation model uses many indicators to compare Electrosteel Castings value to that of its competitors to determine the firm's financial worth. Electrosteel Castings Limited is rated # 3 in operating margin category among its peers. It is rated below average in book value per share category among its peers creating about 694.18 of Book Value Per Share per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Electrosteel Castings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Electrosteel Castings' 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.Electrosteel Book Value Per Share 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.
Electrosteel Castings |
| = | 0.13 % |
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.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
Electrosteel Castings |
| = | 87.95 X |
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Electrosteel Book Value Per Share Comparison
Electrosteel Castings is currently under evaluation in book value per share category among its peers.
Electrosteel Castings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Electrosteel Castings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Electrosteel Castings will eventually generate negative long term returns. The profitability progress is the general direction of Electrosteel Castings' change in net profit over the period of time. It can combine multiple indicators of Electrosteel Castings, 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 | 11.8 B | 12.4 B | |
| Operating Income | 31.4 B | 33 B | |
| Income Before Tax | 9.4 B | 9.8 B | |
| Total Other Income Expense Net | -22 B | -20.9 B | |
| Net Income | 7.4 B | 7.8 B | |
| Income Tax Expense | 2 B | 2.1 B | |
| Net Income From Continuing Ops | 7.4 B | 7.8 B | |
| Net Income Applicable To Common Shares | 3.6 B | 3.8 B | |
| Interest Income | 3.3 B | 2.1 B | |
| Net Interest Income | -2.2 B | -2.3 B | |
| Change To Netincome | 1.3 B | 1.9 B |
Electrosteel Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Electrosteel Castings. 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 Electrosteel Castings 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 Electrosteel Castings' important profitability drivers and their relationship over time.
Use Electrosteel Castings 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 Electrosteel Castings 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 Electrosteel Castings will appreciate offsetting losses from the drop in the long position's value.Electrosteel Castings Pair Trading
Electrosteel Castings Limited Pair Trading Analysis
The ability to find closely correlated positions to Electrosteel Castings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Electrosteel Castings 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 Electrosteel Castings - 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 Electrosteel Castings Limited to buy it.
The correlation of Electrosteel Castings 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 Electrosteel Castings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Electrosteel Castings 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 Electrosteel Castings 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 Electrosteel Castings position
In addition to having Electrosteel Castings 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?
Run Business Supplies Thematic Idea Now
Business Supplies
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Supplies theme has 24 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 Business Supplies Theme or any other thematic opportunities.
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Other Information on Investing in Electrosteel Stock
To fully project Electrosteel Castings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Electrosteel Castings 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 Electrosteel Castings' income statement, its balance sheet, and the statement of cash flows.