Showa Denko Return On Equity vs. EBITDA
Considering Showa Denko's profitability and operating efficiency indicators, Showa Denko Materials may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Showa Denko'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 otc stock could be closely tied with the direction of predictive economic indicators such as signals in population.
Please note, there is a significant difference between Showa Denko's value and its price as these two are different measures arrived at by different means. Investors typically determine if Showa Denko is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Showa Denko'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.
For Showa Denko profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Showa Denko to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Showa Denko Materials utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Showa Denko's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Showa Denko Materials over time as well as its relative position and ranking within its peers.
Showa |
Showa Denko Materials EBITDA vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Showa Denko's current stock value. Our valuation model uses many indicators to compare Showa Denko value to that of its competitors to determine the firm's financial worth. Showa Denko Materials is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in ebitda category among its peers totaling about 484,417,143 of EBITDA per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Showa Denko by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Showa Denko's OTC Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Showa EBITDA 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.
Showa Denko |
| = | 1.75 |
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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Showa Denko |
| = | 847.73 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Showa EBITDA Comparison
Showa Denko is currently under evaluation in ebitda category among its peers.
Showa Denko Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Showa Denko, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Showa Denko will eventually generate negative long term returns. The profitability progress is the general direction of Showa Denko's change in net profit over the period of time. It can combine multiple indicators of Showa Denko, 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.
Showa Denko Materials Co., Ltd. manufactures and sells functional materials, and advanced components and systems in Japan and internationally. As of April 20, 2020, Showa Denko Materials Co., Ltd. operates as a subsidiary of Showa Denko K.K. Hitachi Chemical operates under Chemicals classification in the United States and is traded on OTC Exchange. It employs 23095 people.
Showa Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Showa Denko. 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 Showa Denko 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 Showa Denko's important profitability drivers and their relationship over time.
Use Showa Denko 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 Showa Denko 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 Showa Denko will appreciate offsetting losses from the drop in the long position's value.Showa Denko Pair Trading
Showa Denko Materials Pair Trading Analysis
The ability to find closely correlated positions to McCormick Company could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace McCormick Company 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 McCormick Company - 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 McCormick Company Incorporated to buy it.
The correlation of McCormick Company 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 McCormick Company moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if McCormick Company 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 McCormick Company 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 Showa Denko position
In addition to having Showa Denko 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 Trading Thematic Idea Now
Trading
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Trading 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 Trading Theme or any other thematic opportunities.
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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 otc stock could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Consideration for investing in Showa OTC Stock
If you are still planning to invest in Showa Denko Materials 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 Showa Denko's history and understand the potential risks before investing.
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