Galp Energia Return On Equity vs. Profit Margin
| GALP Stock | EUR 15.54 0.04 0.26% |
For Galp Energia profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Galp Energia to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Galp Energia SGPS utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Galp Energia's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Galp Energia SGPS over time as well as its relative position and ranking within its peers.
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Galp Energia SGPS Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Galp Energia's current stock value. Our valuation model uses many indicators to compare Galp Energia value to that of its competitors to determine the firm's financial worth. Galp Energia SGPS is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in profit margin category among its peers fabricating about 0.15 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Galp Energia SGPS is roughly 6.65 . 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 Galp Energia's earnings, one of the primary drivers of an investment's value.Galp Profit Margin 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.
Galp Energia |
| = | 0.29 |
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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Galp Energia |
| = | 0.04 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Galp Profit Margin Comparison
Galp Energia is currently under evaluation in profit margin category among its peers.
Galp Energia Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Galp Energia, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Galp Energia will eventually generate negative long term returns. The profitability progress is the general direction of Galp Energia's change in net profit over the period of time. It can combine multiple indicators of Galp Energia, 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.
Galp Energia, SGPS, S.A. operates as integrated energy operator in Portugal and internationally. Galp Energia, SGPS, S.A. was incorporated in 1999 and is headquartered in Lisbon, Portugal. GALP ENERGIA operates under Oil And Gas classification in Exotistan and is traded on Commodity Exchange. It employs 6114 people.
Galp Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Galp Energia. 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 Galp Energia 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 Galp Energia's important profitability drivers and their relationship over time.
Use Galp Energia 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 Galp Energia 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 Galp Energia will appreciate offsetting losses from the drop in the long position's value.Galp Energia Pair Trading
Galp Energia SGPS Pair Trading Analysis
The ability to find closely correlated positions to Galp Energia could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Galp Energia 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 Galp Energia - 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 Galp Energia SGPS to buy it.
The correlation of Galp Energia 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 Galp Energia moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Galp Energia SGPS 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 Galp Energia 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 Galp Energia position
In addition to having Galp Energia 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 Defense Thematic Idea Now
Defense
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Defense theme has 16 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 Defense Theme or any other thematic opportunities.
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Additional Tools for Galp Stock Analysis
When running Galp Energia's price analysis, check to measure Galp Energia'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 Galp Energia is operating at the current time. Most of Galp Energia's value examination focuses on studying past and present price action to predict the probability of Galp Energia's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Galp Energia's price. Additionally, you may evaluate how the addition of Galp Energia to your portfolios can decrease your overall portfolio volatility.