Compagnie Plastic Net Income vs. Return On Equity

EZM Stock  EUR 8.36  0.07  0.84%   
Based on the measurements of profitability obtained from Compagnie Plastic's financial statements, Compagnie Plastic Omnium may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess Compagnie Plastic's ability to earn profits and add value for shareholders.
For Compagnie Plastic profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Compagnie Plastic to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Compagnie Plastic Omnium utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Compagnie Plastic's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Compagnie Plastic Omnium over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Compagnie Plastic's value and its price as these two are different measures arrived at by different means. Investors typically determine if Compagnie Plastic is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Compagnie Plastic's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Compagnie Plastic Omnium Return On Equity vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Compagnie Plastic's current stock value. Our valuation model uses many indicators to compare Compagnie Plastic value to that of its competitors to determine the firm's financial worth.
Compagnie Plastic Omnium is one of the top stocks in net income category among its peers. It also is one of the top stocks in return on equity category among its peers . The ratio of Net Income to Return On Equity for Compagnie Plastic Omnium is about  2,789,668,874 . 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 Compagnie Plastic's earnings, one of the primary drivers of an investment's value.

Compagnie Return On Equity vs. Net Income

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.

Compagnie Plastic

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
126.37 M
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.
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.

Compagnie Plastic

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0453
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.

Compagnie Return On Equity Comparison

Compagnie Plastic is currently under evaluation in return on equity category among its peers.

Compagnie Plastic Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Compagnie Plastic, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Compagnie Plastic will eventually generate negative long term returns. The profitability progress is the general direction of Compagnie Plastic's change in net profit over the period of time. It can combine multiple indicators of Compagnie Plastic, 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.
Compagnie Plastic Omnium SA manufactures intelligent exterior systems, clean energy systems, and automotive modules worldwide. The company was founded in 1946 and is headquartered in Levallois-Perret, France. PLASTIC OMN operates under Auto Parts classification in Germany and is traded on Frankfurt Stock Exchange. It employs 20745 people.

Compagnie Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Compagnie Plastic. 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 Compagnie Plastic 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 Compagnie Plastic's important profitability drivers and their relationship over time.

Use Compagnie Plastic 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 Compagnie Plastic 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 Compagnie Plastic will appreciate offsetting losses from the drop in the long position's value.

Compagnie Plastic Pair Trading

Compagnie Plastic Omnium Pair Trading Analysis

The ability to find closely correlated positions to Compagnie Plastic could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Compagnie Plastic 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 Compagnie Plastic - 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 Compagnie Plastic Omnium to buy it.
The correlation of Compagnie Plastic 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 Compagnie Plastic moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Compagnie Plastic Omnium 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 Compagnie Plastic 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Compagnie Plastic position

In addition to having Compagnie Plastic 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 Pharmaceutical Products Thematic Idea Now

Pharmaceutical Products
Pharmaceutical Products Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Pharmaceutical Products theme has 61 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 Pharmaceutical Products Theme or any other thematic opportunities.
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Other Information on Investing in Compagnie Stock

To fully project Compagnie Plastic's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Compagnie Plastic Omnium 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 Compagnie Plastic's income statement, its balance sheet, and the statement of cash flows.
Potential Compagnie Plastic investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Compagnie Plastic investors may work on each financial statement separately, they are all related. The changes in Compagnie Plastic's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Compagnie Plastic's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.