Emera Incorporated Operating Margin vs. Return On Equity
| EMRAF Stock | USD 37.08 0.55 1.46% |
For Emera Incorporated profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Emera Incorporated to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Emera Incorporated utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Emera Incorporated's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Emera Incorporated over time as well as its relative position and ranking within its peers.
Emera |
Emera Incorporated Return On Equity vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Emera Incorporated's current stock value. Our valuation model uses many indicators to compare Emera Incorporated value to that of its competitors to determine the firm's financial worth. Emera Incorporated is rated below average in operating margin category among its peers. It is rated below average in return on equity category among its peers reporting about 0.40 of Return On Equity per Operating Margin. The ratio of Operating Margin to Return On Equity for Emera Incorporated is roughly 2.50 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Emera Incorporated's earnings, one of the primary drivers of an investment's value.Emera Return On Equity 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.
Emera Incorporated |
| = | 0.20 % |
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.
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.
Emera Incorporated |
| = | 0.0811 |
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.
Emera Return On Equity Comparison
Emera Incorporated is currently under evaluation in return on equity category among its peers.
Emera Incorporated Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Emera Incorporated, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Emera Incorporated will eventually generate negative long term returns. The profitability progress is the general direction of Emera Incorporated's change in net profit over the period of time. It can combine multiple indicators of Emera Incorporated, 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.
Emera Incorporated, an energy and services company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity to various customers. The company was incorporated in 1998 and is headquartered in Halifax, Canada. EMERA INC is traded on OTC Exchange in the United States.
Emera Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Emera Incorporated. 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 Emera Incorporated 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 Emera Incorporated's important profitability drivers and their relationship over time.
Use Emera Incorporated 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 Emera Incorporated 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 Emera Incorporated will appreciate offsetting losses from the drop in the long position's value.Emera Incorporated Pair Trading
Emera Incorporated Pair Trading Analysis
The ability to find closely correlated positions to Emera Incorporated could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Emera Incorporated 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 Emera Incorporated - 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 Emera Incorporated to buy it.
The correlation of Emera Incorporated 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 Emera Incorporated moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Emera Incorporated 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 Emera Incorporated 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 Emera Incorporated position
In addition to having Emera Incorporated 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 Emera Pink Sheet
To fully project Emera Incorporated's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Emera Incorporated 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 Emera Incorporated's income statement, its balance sheet, and the statement of cash flows.