General American Return On Asset vs. Price To Earning
| GAM Stock | USD 51.13 0.28 0.55% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.0858 | 0.0904 |
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For General American profitability analysis, we use financial ratios and fundamental drivers that measure the ability of General American to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well General American Investors utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between General American's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of General American Investors over time as well as its relative position and ranking within its peers.
General |
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 General American. If investors know General 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 General American 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 (0.22) | Dividend Share 2.65 | Earnings Share 12.79 | Revenue Per Share 1.147 | Quarterly Revenue Growth 0.011 |
The market value of General American Inv is measured differently than its book value, which is the value of General that is recorded on the company's balance sheet. Investors also form their own opinion of General American's value that differs from its market value or its book value, called intrinsic value, which is General American'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 General American's market value can be influenced by many factors that don't directly affect General American'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 General American's value and its price as these two are different measures arrived at by different means. Investors typically determine if General American is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, General American'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.
General American Inv Price To Earning vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining General American's current stock value. Our valuation model uses many indicators to compare General American value to that of its competitors to determine the firm's financial worth. General American Investors is rated # 3 in return on asset category among its peers. It is rated # 2 in price to earning category among its peers reporting about 3,363 of Price To Earning per Return On Asset. Comparative valuation analysis is a catch-all technique that is used if you cannot value General American by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.General Price To Earning 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.
General American |
| = | 0.0043 |
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.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
General American |
| = | 14.46 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
General Price To Earning Comparison
General American is currently under evaluation in price to earning category among its peers.
General American Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in General American, profitability is also one of the essential criteria for including it into their portfolios because, without profit, General American will eventually generate negative long term returns. The profitability progress is the general direction of General American's change in net profit over the period of time. It can combine multiple indicators of General American, 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 | 1.5 M | 1.6 M | |
| Operating Income | 273.4 M | 287.1 M | |
| Net Income From Continuing Ops | 273.4 M | 287.1 M | |
| Income Before Tax | 273.4 M | 287.1 M | |
| Total Other Income Expense Net | 6.7 K | 7 K | |
| Net Loss | -216.9 M | -206 M | |
| Net Income | 273.4 M | 287.1 M | |
| Income Tax Expense | 11.3 M | 11.9 M | |
| Net Interest Income | 8.4 M | 8.8 M | |
| Interest Income | 8.4 M | 8.8 M | |
| Net Income Per Share | 11.04 | 11.60 | |
| Net Income Per E B T | 0.99 | 1.01 |
General Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on General American. 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 General American 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 General American's important profitability drivers and their relationship over time.
Use General American 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 General American 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 General American will appreciate offsetting losses from the drop in the long position's value.General American Pair Trading
General American Investors Pair Trading Analysis
The ability to find closely correlated positions to General American could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace General American 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 General American - 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 General American Investors to buy it.
The correlation of General American 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 General American moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if General American Inv 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 General American 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 General American position
In addition to having General American 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?
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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Precious Metals theme has 61 constituents at this time.
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To fully project General American's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of General American Inv 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 General American's income statement, its balance sheet, and the statement of cash flows.