European Residential Gross Profit vs. Return On Equity
| ERE-UN Stock | CAD 3.67 0.06 1.66% |
Gross Profit | First Reported 2017-03-31 | Previous Quarter 19.1 M | Current Value 17.6 M | Quarterly Volatility 7.1 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.61 | 0.7852 |
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For European Residential profitability analysis, we use financial ratios and fundamental drivers that measure the ability of European Residential to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well European Residential Real utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between European Residential's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of European Residential Real over time as well as its relative position and ranking within its peers.
European |
European Residential Real Return On Equity vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining European Residential's current stock value. Our valuation model uses many indicators to compare European Residential value to that of its competitors to determine the firm's financial worth. European Residential Real is rated below average in gross profit category among its peers. It is rated # 5 in return on equity category among its peers . At present, European Residential's Gross Profit is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value European Residential by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for European Residential'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.European Return On Equity vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
European Residential |
| = | 68.98 M |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
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.
European Residential |
| = | -0.11 |
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.
European Return On Equity Comparison
European Residential is currently under evaluation in return on equity category among its peers.
European Residential Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in European Residential, profitability is also one of the essential criteria for including it into their portfolios because, without profit, European Residential will eventually generate negative long term returns. The profitability progress is the general direction of European Residential's change in net profit over the period of time. It can combine multiple indicators of European Residential, 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 | ||
| Operating Income | 66.3 M | 69.6 M | |
| Net Loss | -114.2 M | -108.5 M | |
| Income Before Tax | -167.8 M | -159.4 M | |
| Net Loss | -114.2 M | -108.5 M | |
| Income Tax Expense | -53.6 M | -50.9 M | |
| Net Interest Income | -39.7 M | -37.8 M | |
| Total Other Income Expense Net | -195.4 M | -185.6 M | |
| Net Income Applicable To Common Shares | 133.9 M | 68.5 M | |
| Change To Netincome | -55.6 M | -52.8 M | |
| Net Loss | (1.25) | (1.19) | |
| Income Quality | (0.48) | (0.46) | |
| Net Income Per E B T | 0.68 | 1.34 |
European Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on European Residential. 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 European Residential 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 European Residential's important profitability drivers and their relationship over time.
Use European Residential 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 European Residential 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 European Residential will appreciate offsetting losses from the drop in the long position's value.European Residential Pair Trading
European Residential Real Pair Trading Analysis
The ability to find closely correlated positions to European Residential could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace European Residential 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 European Residential - 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 European Residential Real to buy it.
The correlation of European Residential 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 European Residential moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if European Residential Real 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 European Residential 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 European Residential position
In addition to having European Residential 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 European Stock
To fully project European Residential's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of European Residential Real 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 European Residential's income statement, its balance sheet, and the statement of cash flows.