Grindrod Shipping Operating Margin vs. Price To Book
Considering the key profitability indicators obtained from Grindrod Shipping's historical financial statements, Grindrod Shipping Holdings may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess Grindrod Shipping's ability to earn profits and add value for shareholders.
Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.
For Grindrod Shipping profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Grindrod Shipping to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Grindrod Shipping Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Grindrod Shipping's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Grindrod Shipping Holdings over time as well as its relative position and ranking within its peers.
Grindrod |
Grindrod Shipping Price To Book vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Grindrod Shipping's current stock value. Our valuation model uses many indicators to compare Grindrod Shipping value to that of its competitors to determine the firm's financial worth. Grindrod Shipping Holdings is rated below average in operating margin category among its peers. It is rated below average in price to book category among its peers fabricating about 40.56 of Price To Book per Operating Margin. 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 Grindrod Shipping's earnings, one of the primary drivers of an investment's value.Grindrod Price To Book vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Grindrod Shipping |
| = | 0.03 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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.
Grindrod Shipping |
| = | 1.14 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.
Grindrod Price To Book Comparison
Grindrod Shipping is currently under evaluation in price to book category among its peers.
Grindrod Shipping Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Grindrod Shipping, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Grindrod Shipping will eventually generate negative long term returns. The profitability progress is the general direction of Grindrod Shipping's change in net profit over the period of time. It can combine multiple indicators of Grindrod Shipping, 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.
Grindrod Shipping Holdings Ltd., an international shipping company, owns, charters-in, and operates a fleet of dry bulk carriers and tankers worldwide. Its customers include shipping companies, trading houses, mining companies, industrial manufacturing companies, and oil companies, as well as traders of grains, steel, and forestry products. Grindrod Shipping operates under Marine Shipping classification in the United States and is traded on NASDAQ Exchange. It employs 596 people.
Grindrod Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Grindrod Shipping. 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 Grindrod Shipping 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 Grindrod Shipping's important profitability drivers and their relationship over time.
Use Grindrod Shipping 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 Grindrod Shipping 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 Grindrod Shipping will appreciate offsetting losses from the drop in the long position's value.Grindrod Shipping Pair Trading
Grindrod Shipping Holdings Pair Trading Analysis
The ability to find closely correlated positions to Grindrod Shipping could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Grindrod Shipping 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 Grindrod Shipping - 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 Grindrod Shipping Holdings to buy it.
The correlation of Grindrod Shipping 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 Grindrod Shipping moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Grindrod Shipping 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 Grindrod Shipping 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 Grindrod Shipping position
In addition to having Grindrod Shipping 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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Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Consideration for investing in Grindrod Stock
If you are still planning to invest in Grindrod Shipping check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Grindrod Shipping's history and understand the potential risks before investing.
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