Essity AB Revenue vs. Return On Equity
| ESSITY-A | SEK 304.50 3.50 1.16% |
For Essity AB profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Essity AB to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Essity AB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Essity AB's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Essity AB over time as well as its relative position and ranking within its peers.
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Essity AB Return On Equity vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Essity AB's current stock value. Our valuation model uses many indicators to compare Essity AB value to that of its competitors to determine the firm's financial worth. Essity AB is rated as one of the top companies in revenue category among its peers. It also is one of the top stocks in return on equity category among its peers . The ratio of Revenue to Return On Equity for Essity AB is about 1,868,098,086,124 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Essity AB by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Essity AB'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.Essity Revenue vs. Competition
Essity AB is rated as one of the top companies in revenue category among its peers. Market size based on revenue of Household & Personal Products industry is currently estimated at about 429.82 Billion. Essity AB totals roughly 156.17 Billion in revenue claiming about 36% of equities under Household & Personal Products industry.
Essity Return On Equity vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Essity AB |
| = | 156.17 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
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.
Essity AB |
| = | 0.0836 |
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.
Essity Return On Equity Comparison
Essity AB is currently under evaluation in return on equity category among its peers.
Essity AB Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Essity AB, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Essity AB will eventually generate negative long term returns. The profitability progress is the general direction of Essity AB's change in net profit over the period of time. It can combine multiple indicators of Essity AB, 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.
Essity AB develops, produces, and sells personal care, consumer tissue, and professional hygiene products and solutions worldwide. Essity AB was founded in 1849 and is headquartered in Stockholm, Sweden. Essity AB operates under Household Personal Products classification in Sweden and is traded on Stockholm Stock Exchange. It employs 47000 people.
Essity Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Essity AB. 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 Essity AB 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 Essity AB's important profitability drivers and their relationship over time.
Use Essity AB 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 Essity AB 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 Essity AB will appreciate offsetting losses from the drop in the long position's value.Essity AB Pair Trading
Essity AB Pair Trading Analysis
The ability to find closely correlated positions to Essity AB could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Essity AB 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 Essity AB - 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 Essity AB to buy it.
The correlation of Essity AB 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 Essity AB moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Essity AB 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 Essity AB 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 Essity AB position
In addition to having Essity AB 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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Companies specializing in advertising, marketing and advertising services. The Advertising theme has 42 constituents at this time.
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Other Information on Investing in Essity Stock
To fully project Essity AB's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Essity AB 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 Essity AB's income statement, its balance sheet, and the statement of cash flows.