Freedom Holding Return On Asset vs. Net Income
| FRHC Stock | USD 117.47 0.17 0.14% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.92 | 0.5527 |
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For Freedom Holding profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Freedom Holding to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Freedom Holding Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Freedom Holding's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Freedom Holding Corp over time as well as its relative position and ranking within its peers.
Freedom |
Is Investment Banking & Brokerage space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Freedom Holding. If investors know Freedom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Freedom Holding listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.03) | Earnings Share 5.7 | Revenue Per Share 22.019 | Quarterly Revenue Growth 0.5 | Return On Assets 0.0427 |
The market value of Freedom Holding Corp is measured differently than its book value, which is the value of Freedom that is recorded on the company's balance sheet. Investors also form their own opinion of Freedom Holding's value that differs from its market value or its book value, called intrinsic value, which is Freedom Holding's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Freedom Holding's market value can be influenced by many factors that don't directly affect Freedom Holding's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Freedom Holding's value and its price as these two are different measures arrived at by different means. Investors typically determine if Freedom Holding is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Freedom Holding'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.
Freedom Holding Corp Net Income vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Freedom Holding's current stock value. Our valuation model uses many indicators to compare Freedom Holding value to that of its competitors to determine the firm's financial worth. Freedom Holding Corp is rated below average in return on asset category among its peers. It is rated # 4 in net income category among its peers making up about 8,794,847,775 of Net Income per Return On Asset. At present, Freedom Holding's Net Income is projected to increase significantly based on the last few years of reporting. 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 Freedom Holding's earnings, one of the primary drivers of an investment's value.Freedom Holding's Earnings Breakdown by Geography
Freedom Net Income vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Freedom Holding |
| = | 0.0427 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
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.
Freedom Holding |
| = | 375.54 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.
Freedom Net Income Comparison
Freedom Holding is currently under evaluation in net income category among its peers.
Freedom Holding Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Freedom Holding, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Freedom Holding will eventually generate negative long term returns. The profitability progress is the general direction of Freedom Holding's change in net profit over the period of time. It can combine multiple indicators of Freedom Holding, 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 | -18.9 M | -19.9 M | |
| Operating Income | 72.2 M | 75.9 M | |
| Income Before Tax | 435.4 M | 457.1 M | |
| Total Other Income Expense Net | 363.1 M | 381.3 M | |
| Net Income | 375.5 M | 394.3 M | |
| Income Tax Expense | 60.4 M | 63.4 M | |
| Net Income From Continuing Ops | 375 M | 393.7 M | |
| Non Operating Income Net Other | 103.7 M | 108.9 M | |
| Net Income Applicable To Common Shares | 235.9 M | 247.7 M | |
| Interest Income | 11.8 M | 9.3 M | |
| Net Interest Income | -501.1 M | -476.1 M | |
| Change To Netincome | -928.4 M | -882 M | |
| Net Income Per Share | 6.37 | 6.69 | |
| Income Quality | (2.83) | (2.98) | |
| Net Income Per E B T | 0.86 | 0.76 |
Freedom Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Freedom Holding. 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 Freedom Holding 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 Freedom Holding's important profitability drivers and their relationship over time.
Use Freedom Holding 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 Freedom Holding 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 Freedom Holding will appreciate offsetting losses from the drop in the long position's value.Freedom Holding Pair Trading
Freedom Holding Corp Pair Trading Analysis
The ability to find closely correlated positions to Freedom Holding could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Freedom Holding 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 Freedom Holding - 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 Freedom Holding Corp to buy it.
The correlation of Freedom Holding 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 Freedom Holding moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Freedom Holding Corp 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 Freedom Holding 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 Freedom Holding position
In addition to having Freedom Holding 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 Wholesale Thematic Idea Now
Wholesale
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Wholesale 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 Wholesale Theme or any other thematic opportunities.
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To fully project Freedom Holding's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Freedom Holding Corp 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 Freedom Holding's income statement, its balance sheet, and the statement of cash flows.