Flower One Return On Equity vs. Net Income
Based on the measurements of profitability obtained from Flower One's financial statements, Flower One Holdings 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 Flower One's ability to earn profits and add value for shareholders.
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For Flower One profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Flower One to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Flower One Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Flower One's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Flower One Holdings over time as well as its relative position and ranking within its peers.
Flower |
Flower One Holdings Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Flower One's current stock value. Our valuation model uses many indicators to compare Flower One value to that of its competitors to determine the firm's financial worth. Flower One Holdings is rated # 4 in return on equity category among its peers. It is rated below average in net income category among its peers . 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 Flower One's earnings, one of the primary drivers of an investment's value.Flower Net Income 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.
Flower One |
| = | -2.94 |
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.
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.
Flower One |
| = | (24.45 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.
Flower Net Income Comparison
Flower One is currently under evaluation in net income category among its peers.
Flower One Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Flower One, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Flower One will eventually generate negative long term returns. The profitability progress is the general direction of Flower One's change in net profit over the period of time. It can combine multiple indicators of Flower One, 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.
Flower One Holdings Inc. engages in the cultivation and production of medical and recreational cannabis. The company sells its products directly to dispensaries, as well as engages in the contract cultivation, production, and packaging for consumer cannabis brands. Flower One is traded on OTC Exchange in the United States.
Flower Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Flower One. 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 Flower One 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 Flower One's important profitability drivers and their relationship over time.
Use Flower One 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 Flower One 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 Flower One will appreciate offsetting losses from the drop in the long position's value.Flower One Pair Trading
Flower One Holdings Pair Trading Analysis
The ability to find closely correlated positions to Flower One could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Flower One 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 Flower One - 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 Flower One Holdings to buy it.
The correlation of Flower One 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 Flower One moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Flower One Holdings 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 Flower One 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 Flower One position
In addition to having Flower One 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 Candy and Soda Thematic Idea Now
Candy and Soda
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Candy and Soda theme has 13 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 Candy and Soda Theme or any other thematic opportunities.
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Other Information on Investing in Flower OTC Stock
To fully project Flower One's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Flower One Holdings 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 Flower One's income statement, its balance sheet, and the statement of cash flows.