ENCE Energa Return On Equity vs. Net Income
| ENC Stock | EUR 2.81 0.02 0.71% |
For ENCE Energa profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ENCE Energa to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ENCE Energa y utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ENCE Energa's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ENCE Energa y over time as well as its relative position and ranking within its peers.
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ENCE Energa y Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ENCE Energa's current stock value. Our valuation model uses many indicators to compare ENCE Energa value to that of its competitors to determine the firm's financial worth. ENCE Energa y is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in net income category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value ENCE Energa by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for ENCE Energa'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.ENCE Net Income 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.
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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.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
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Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
ENCE Net Income Comparison
ENCE Energa is currently under evaluation in net income category among its peers.
ENCE Energa Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ENCE Energa, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ENCE Energa will eventually generate negative long term returns. The profitability progress is the general direction of ENCE Energa's change in net profit over the period of time. It can combine multiple indicators of ENCE Energa, 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.
ENCE Energa y Celulosa, S.A., together with its subsidiaries, produces and sells eucalyptus pulp and renewable energy in Germany, Iberia, Poland, Italy, France, other Western and Eastern Europe, and internationally. ENCE Energa y Celulosa, S.A. was founded in 1957 and is headquartered in Madrid, Spain. ENCE ENERGIA operates under Paper Paper Products classification in Spain and is traded on Madrid SE C.A.T.S.. It employs 1150 people.
ENCE Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ENCE Energa. 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 ENCE Energa 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 ENCE Energa's important profitability drivers and their relationship over time.
Use ENCE Energa 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 ENCE Energa 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 ENCE Energa will appreciate offsetting losses from the drop in the long position's value.ENCE Energa Pair Trading
ENCE Energa y Pair Trading Analysis
The ability to find closely correlated positions to ENCE Energa could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ENCE Energa 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 ENCE Energa - 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 ENCE Energa y to buy it.
The correlation of ENCE Energa 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 ENCE Energa moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ENCE Energa y 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 ENCE Energa 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 ENCE Energa position
In addition to having ENCE Energa 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 ENCE Stock
To fully project ENCE Energa's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ENCE Energa y 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 ENCE Energa's income statement, its balance sheet, and the statement of cash flows.