Fortescue EBITDA vs. Gross Profit
| FMG Stock | 18.99 0.29 1.55% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 10.5 B | Current Value 11 B | Quarterly Volatility 4.5 B |
For Fortescue profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fortescue to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fortescue utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fortescue's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fortescue over time as well as its relative position and ranking within its peers.
Fortescue |
Fortescue Gross Profit vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Fortescue's current stock value. Our valuation model uses many indicators to compare Fortescue value to that of its competitors to determine the firm's financial worth. Fortescue is one of the top stocks in ebitda category among its peers. It also is one of the top stocks in gross profit category among its peers fabricating about 0.86 of Gross Profit per EBITDA. The ratio of EBITDA to Gross Profit for Fortescue is roughly 1.16 . At this time, Fortescue's EBITDA is comparatively stable compared to the past year. 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 Fortescue's earnings, one of the primary drivers of an investment's value.Fortescue Gross Profit vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Fortescue |
| = | 10.52 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Fortescue |
| = | 9.05 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Fortescue Gross Profit Comparison
Fortescue is currently under evaluation in gross profit category among its peers.
Fortescue Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Fortescue, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fortescue will eventually generate negative long term returns. The profitability progress is the general direction of Fortescue's change in net profit over the period of time. It can combine multiple indicators of Fortescue, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 175 M | 183.8 M | |
| Operating Income | 8.5 B | 8.9 B | |
| Income Before Tax | 8.3 B | 8.7 B | |
| Total Other Income Expense Net | -189 M | -198.4 M | |
| Net Income | 5.7 B | 6 B | |
| Income Tax Expense | 2.6 B | 2.8 B | |
| Net Income Applicable To Common Shares | 5.5 B | 5.8 B | |
| Net Income From Continuing Ops | 5.7 B | 4.7 B | |
| Interest Income | 218 M | 206.2 M | |
| Net Interest Income | -168 M | -176.4 M | |
| Change To Netincome | 1.2 B | 1.2 B |
Fortescue Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Fortescue. 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 Fortescue 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 Fortescue's important profitability drivers and their relationship over time.
Use Fortescue 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 Fortescue 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 Fortescue will appreciate offsetting losses from the drop in the long position's value.Fortescue Pair Trading
Fortescue Pair Trading Analysis
The ability to find closely correlated positions to Fortescue could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fortescue 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 Fortescue - 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 Fortescue to buy it.
The correlation of Fortescue 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 Fortescue moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fortescue 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 Fortescue 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 Fortescue position
In addition to having Fortescue 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 Machinery Thematic Idea Now
Machinery
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Machinery 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 Machinery Theme or any other thematic opportunities.
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Additional Tools for Fortescue Stock Analysis
When running Fortescue's price analysis, check to measure Fortescue'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 Fortescue is operating at the current time. Most of Fortescue's value examination focuses on studying past and present price action to predict the probability of Fortescue's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Fortescue's price. Additionally, you may evaluate how the addition of Fortescue to your portfolios can decrease your overall portfolio volatility.