Experian PLC Return On Equity vs. Profit Margin
| EXPGF Stock | USD 46.68 3.83 7.58% |
For Experian PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Experian PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Experian PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Experian PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Experian PLC over time as well as its relative position and ranking within its peers.
Experian |
Experian PLC Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Experian PLC's current stock value. Our valuation model uses many indicators to compare Experian PLC value to that of its competitors to determine the firm's financial worth. Experian PLC is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in profit margin category among its peers fabricating about 0.53 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Experian PLC is roughly 1.88 . 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 Experian PLC's earnings, one of the primary drivers of an investment's value.Experian Profit Margin 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.
Experian PLC |
| = | 0.28 |
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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Experian PLC |
| = | 0.15 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Experian Profit Margin Comparison
Experian PLC is currently under evaluation in profit margin category among its peers.
Experian PLC Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Experian PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Experian PLC will eventually generate negative long term returns. The profitability progress is the general direction of Experian PLC's change in net profit over the period of time. It can combine multiple indicators of Experian PLC, 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.
Experian plc, together with its subsidiaries, operates as a technology company. Experian plc was founded in 1826 and is headquartered in Dublin, Ireland. EXPERIAN PLC operates under Consulting Services classification in the United States and is traded on OTC Exchange. It employs 18952 people.
Experian Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Experian PLC. 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 Experian PLC 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 Experian PLC's important profitability drivers and their relationship over time.
Use Experian PLC 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 Experian PLC 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 Experian PLC will appreciate offsetting losses from the drop in the long position's value.Experian PLC Pair Trading
Experian PLC Pair Trading Analysis
The ability to find closely correlated positions to Experian PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Experian PLC 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 Experian PLC - 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 Experian PLC to buy it.
The correlation of Experian PLC 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 Experian PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Experian PLC 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 Experian PLC 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 Experian PLC position
In addition to having Experian PLC 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 Experian OTC Stock
To fully project Experian PLC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Experian PLC 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 Experian PLC's income statement, its balance sheet, and the statement of cash flows.