Lafargeholcim Net Income vs. Current Valuation
| HCMLY Stock | USD 20.06 0.01 0.05% |
For Lafargeholcim profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lafargeholcim to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lafargeholcim Ltd ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lafargeholcim's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lafargeholcim Ltd ADR over time as well as its relative position and ranking within its peers.
Lafargeholcim |
Lafargeholcim ADR Current Valuation vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lafargeholcim's current stock value. Our valuation model uses many indicators to compare Lafargeholcim value to that of its competitors to determine the firm's financial worth. Lafargeholcim Ltd ADR is rated below average in net income category among its peers. It is rated as one of the top companies in current valuation category among its peers reporting about 18.36 of Current Valuation per Net Income. Comparative valuation analysis is a catch-all model that can be used if you cannot value Lafargeholcim by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lafargeholcim's Pink Sheet. 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.Lafargeholcim Current Valuation vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Lafargeholcim |
| = | 2.3 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Lafargeholcim |
| = | 42.19 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Lafargeholcim Current Valuation vs Competition
Lafargeholcim Ltd ADR is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Building Materials industry is currently estimated at about 136.88 Billion. Lafargeholcim totals roughly 42.19 Billion in current valuation claiming about 31% of stocks in Building Materials industry.
Lafargeholcim Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lafargeholcim, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lafargeholcim will eventually generate negative long term returns. The profitability progress is the general direction of Lafargeholcim's change in net profit over the period of time. It can combine multiple indicators of Lafargeholcim, 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.
Holcim Ltd, together with its subsidiaries, operates as a building materials and solutions company in the Asia Pacific, Europe, Latin America, the Middle East, Africa, and North America. Holcim Ltd was founded in 1833 and is headquartered in Zug, Switzerland. Holcim is traded on OTC Exchange in the United States.
Lafargeholcim Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lafargeholcim. 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 Lafargeholcim 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 Lafargeholcim's important profitability drivers and their relationship over time.
Use Lafargeholcim 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 Lafargeholcim 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 Lafargeholcim will appreciate offsetting losses from the drop in the long position's value.Lafargeholcim Pair Trading
Lafargeholcim Ltd ADR Pair Trading Analysis
The ability to find closely correlated positions to Lafargeholcim could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lafargeholcim 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 Lafargeholcim - 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 Lafargeholcim Ltd ADR to buy it.
The correlation of Lafargeholcim 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 Lafargeholcim moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lafargeholcim ADR 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 Lafargeholcim 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 Lafargeholcim position
In addition to having Lafargeholcim 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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Additional Tools for Lafargeholcim Pink Sheet Analysis
When running Lafargeholcim's price analysis, check to measure Lafargeholcim'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 Lafargeholcim is operating at the current time. Most of Lafargeholcim's value examination focuses on studying past and present price action to predict the probability of Lafargeholcim's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lafargeholcim's price. Additionally, you may evaluate how the addition of Lafargeholcim to your portfolios can decrease your overall portfolio volatility.