FS Credit Price To Book vs. Retained Earnings
| FSCO Stock | 6.60 0.11 1.64% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Net Profit Margin | 1.13 | 0.9228 |
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| Operating Profit Margin | 1.12 | 0.9398 |
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| Pretax Profit Margin | 1.12 | 0.9398 |
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For FS Credit profitability analysis, we use financial ratios and fundamental drivers that measure the ability of FS Credit to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well FS Credit Opportunities utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between FS Credit's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of FS Credit Opportunities over time as well as its relative position and ranking within its peers.
FSCO |
Is Asset Management & Custody Banks 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 FS Credit. If investors know FSCO 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 FS Credit listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share 1.16 |
The market value of FS Credit Opportunities is measured differently than its book value, which is the value of FSCO that is recorded on the company's balance sheet. Investors also form their own opinion of FS Credit's value that differs from its market value or its book value, called intrinsic value, which is FS Credit'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 FS Credit's market value can be influenced by many factors that don't directly affect FS Credit'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 FS Credit's value and its price as these two are different measures arrived at by different means. Investors typically determine if FS Credit is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, FS Credit'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.
FS Credit Opportunities Retained Earnings vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining FS Credit's current stock value. Our valuation model uses many indicators to compare FS Credit value to that of its competitors to determine the firm's financial worth. FS Credit Opportunities is rated below average in price to book category among its peers. It is rated below average in retained earnings category among its peers . FS Credit reported last year Retained Earnings of (287.57 Million). 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 FS Credit's earnings, one of the primary drivers of an investment's value.FSCO Retained Earnings vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
FS Credit |
| = | 0.94 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
FS Credit |
| = | (287.57 M) |
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.
FSCO Retained Earnings Comparison
FS Credit is currently under evaluation in retained earnings category among its peers.
FS Credit Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in FS Credit, profitability is also one of the essential criteria for including it into their portfolios because, without profit, FS Credit will eventually generate negative long term returns. The profitability progress is the general direction of FS Credit's change in net profit over the period of time. It can combine multiple indicators of FS Credit, 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 | ||
| Net Interest Income | 196.6 M | 209.7 M | |
| Interest Income | 240.5 M | 253.5 M | |
| Operating Income | 247.4 M | 259.8 M | |
| Net Income From Continuing Ops | 242.9 M | 255.1 M | |
| Income Before Tax | 247.4 M | 259.8 M | |
| Net Income | 242.9 M | 255.1 M | |
| Income Tax Expense | 4.5 M | 4.7 M | |
| Total Other Income Expense Net | -14.3 M | -15 M | |
| Net Loss | (0.71) | (0.75) | |
| Income Quality | 0.56 | 0.59 | |
| Net Income Per E B T | 0.98 | 1.10 |
FSCO Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on FS Credit. 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 FS Credit 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 FS Credit's important profitability drivers and their relationship over time.
Use FS Credit 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 FS Credit 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 FS Credit will appreciate offsetting losses from the drop in the long position's value.FS Credit Pair Trading
FS Credit Opportunities Pair Trading Analysis
The ability to find closely correlated positions to FS Credit could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace FS Credit 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 FS Credit - 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 FS Credit Opportunities to buy it.
The correlation of FS Credit 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 FS Credit moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if FS Credit Opportunities 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 FS Credit 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 FS Credit position
In addition to having FS Credit 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 Aggressive Funds Thematic Idea Now
Aggressive Funds
Funds or Etfs that attempt to achieve high capital gains by investing in companies with high growth potential and above average risk. The Aggressive Funds theme has 43 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 Aggressive Funds Theme or any other thematic opportunities.
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To fully project FS Credit's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of FS Credit Opportunities 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 FS Credit's income statement, its balance sheet, and the statement of cash flows.