Earthstone Energy Return On Equity vs. Revenue
| ESTEDelisted Stock | USD 15.32 0.32 2.13% |
For Earthstone Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Earthstone Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Earthstone Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Earthstone Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Earthstone Energy over time as well as its relative position and ranking within its peers.
Earthstone |
Earthstone Energy Revenue vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Earthstone Energy's current stock value. Our valuation model uses many indicators to compare Earthstone Energy value to that of its competitors to determine the firm's financial worth. Earthstone Energy is one of the top stocks in return on equity category among its peers. It is rated below average in revenue category among its peers totaling about 5,594,567,657 of Revenue per Return On Equity. Comparative valuation analysis is a catch-all technique that is used if you cannot value Earthstone Energy by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Earthstone Revenue 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.
Earthstone Energy |
| = | 0.3 |
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.
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.
Earthstone Energy |
| = | 1.7 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.
Earthstone Revenue vs Competition
Earthstone Energy is rated below average in revenue category among its peers. Market size based on revenue of Energy industry is currently estimated at about 36.46 Billion. Earthstone Energy holds roughly 1.7 Billion in revenue claiming about 5% of equities under Energy industry.
Earthstone Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Earthstone Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Earthstone Energy will eventually generate negative long term returns. The profitability progress is the general direction of Earthstone Energy's change in net profit over the period of time. It can combine multiple indicators of Earthstone Energy, 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.
Earthstone Energy, Inc., an independent oil and gas company, engages in the acquisition, exploration, development, and production of oil and natural gas properties in the United States. Earthstone Energy, Inc. was incorporated in 1969 and is headquartered in The Woodlands, Texas. Earthstone Energy operates under Oil Gas EP classification in the United States and is traded on New York Stock Exchange. It employs 81 people.
Earthstone Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Earthstone Energy. 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 Earthstone Energy 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 Earthstone Energy's important profitability drivers and their relationship over time.
Use Earthstone Energy 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 Earthstone Energy 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 Earthstone Energy will appreciate offsetting losses from the drop in the long position's value.Earthstone Energy Pair Trading
Earthstone Energy Pair Trading Analysis
The ability to find closely correlated positions to Earthstone Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Earthstone Energy 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 Earthstone Energy - 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 Earthstone Energy to buy it.
The correlation of Earthstone Energy 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 Earthstone Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Earthstone Energy 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 Earthstone Energy 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 Earthstone Energy position
In addition to having Earthstone Energy 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 Insurance Providers Thematic Idea Now
Insurance Providers
Companies providing all types of insurance and insurance services. The Insurance Providers theme has 40 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 Insurance Providers Theme or any other thematic opportunities.
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Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Consideration for investing in Earthstone Stock
If you are still planning to invest in Earthstone Energy check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Earthstone Energy's history and understand the potential risks before investing.
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