Leonardo SpA Return On Equity vs. Revenue
| FINMY Stock | USD 13.08 0.22 1.65% |
For Leonardo SpA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Leonardo SpA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Leonardo SpA ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Leonardo SpA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Leonardo SpA ADR over time as well as its relative position and ranking within its peers.
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Leonardo SpA ADR Revenue vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Leonardo SpA's current stock value. Our valuation model uses many indicators to compare Leonardo SpA value to that of its competitors to determine the firm's financial worth. Leonardo SpA ADR is rated # 4 in return on equity category among its peers. It also is rated # 4 in revenue category among its peers totaling about 122,593,235,039 of Revenue per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Leonardo SpA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Leonardo SpA's Pink Sheet. 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.Leonardo 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.
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| = | 0.12 |
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.
Leonardo SpA |
| = | 14.13 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.
Leonardo Revenue vs Competition
Leonardo SpA ADR is rated # 4 in revenue category among its peers. Market size based on revenue of Aerospace & Defense industry is currently estimated at about 69.44 Billion. Leonardo SpA totals roughly 14.13 Billion in revenue claiming about 20% of stocks in Aerospace & Defense industry.
Leonardo SpA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Leonardo SpA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Leonardo SpA will eventually generate negative long term returns. The profitability progress is the general direction of Leonardo SpA's change in net profit over the period of time. It can combine multiple indicators of Leonardo SpA, 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.
Leonardo S.p.a., an industrial and technological company, engages in the helicopters, defense electronics and security systems, aeronautics, space, and other businesses in Italy, the United Kingdom, rest of Europe, the United States, and internationally. Leonardo S.p.a. was founded in 1948 and is headquartered in Rome, Italy. Finmeccanica ADR operates under Aerospace Defense classification in the United States and is traded on OTC Exchange. It employs 50441 people.
Leonardo Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Leonardo SpA. 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 Leonardo SpA 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 Leonardo SpA's important profitability drivers and their relationship over time.
Use Leonardo SpA 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 Leonardo SpA 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 Leonardo SpA will appreciate offsetting losses from the drop in the long position's value.Leonardo SpA Pair Trading
Leonardo SpA ADR Pair Trading Analysis
The ability to find closely correlated positions to Leonardo SpA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Leonardo SpA 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 Leonardo SpA - 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 Leonardo SpA ADR to buy it.
The correlation of Leonardo SpA 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 Leonardo SpA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Leonardo SpA ADR 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 Leonardo SpA 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 Leonardo SpA position
In addition to having Leonardo SpA 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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Additional Tools for Leonardo Pink Sheet Analysis
When running Leonardo SpA's price analysis, check to measure Leonardo SpA's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Leonardo SpA is operating at the current time. Most of Leonardo SpA's value examination focuses on studying past and present price action to predict the probability of Leonardo SpA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Leonardo SpA's price. Additionally, you may evaluate how the addition of Leonardo SpA to your portfolios can decrease your overall portfolio volatility.