Faes Farma Price To Earning vs. Profit Margin
| FAE Stock | EUR 3.56 0.04 1.14% |
For Faes Farma profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Faes Farma to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Faes Farma SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Faes Farma's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Faes Farma SA over time as well as its relative position and ranking within its peers.
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Faes Farma SA Profit Margin vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Faes Farma's current stock value. Our valuation model uses many indicators to compare Faes Farma value to that of its competitors to determine the firm's financial worth. Faes Farma SA is one of the top stocks in price to earning category among its peers. It also is one of the top stocks in profit margin category among its peers fabricating about 0.01 of Profit Margin per Price To Earning. The ratio of Price To Earning to Profit Margin for Faes Farma SA is roughly 109.73 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Faes Farma by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Faes Farma'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.Faes Profit Margin vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Faes Farma |
| = | 20.64 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.
Faes Farma |
| = | 0.19 % |
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.
Faes Profit Margin Comparison
Faes Farma is currently under evaluation in profit margin category among its peers.
Faes Farma Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Faes Farma, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Faes Farma will eventually generate negative long term returns. The profitability progress is the general direction of Faes Farma's change in net profit over the period of time. It can combine multiple indicators of Faes Farma, 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.
Faes Farma, S.A., a pharmaceutical company, researches, develops, produces, and commercializes pharmaceutical products and raw materials. Faes Farma, S.A. was founded in 1933 and is headquartered in Madrid, Spain. FAES FARMA operates under Medical Instruments Supplies classification in Spain and is traded on Madrid SE C.A.T.S.. It employs 1264 people.
Faes Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Faes Farma. 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 Faes Farma 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 Faes Farma's important profitability drivers and their relationship over time.
Use Faes Farma 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 Faes Farma 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 Faes Farma will appreciate offsetting losses from the drop in the long position's value.Faes Farma Pair Trading
Faes Farma SA Pair Trading Analysis
The ability to find closely correlated positions to Faes Farma could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Faes Farma 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 Faes Farma - 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 Faes Farma SA to buy it.
The correlation of Faes Farma 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 Faes Farma moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Faes Farma SA 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 Faes Farma 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 Faes Farma position
In addition to having Faes Farma 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 Utilities Thematic Idea Now
Utilities
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Utilities 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 Utilities Theme or any other thematic opportunities.
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Other Information on Investing in Faes Stock
To fully project Faes Farma's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Faes Farma SA 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 Faes Farma's income statement, its balance sheet, and the statement of cash flows.