Henkel AG Price To Book vs. Net Income
| HELKF Stock | USD 76.19 2.19 2.96% |
For Henkel AG profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Henkel AG to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Henkel AG Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Henkel AG's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Henkel AG Co over time as well as its relative position and ranking within its peers.
Henkel |
Henkel AG Net Income vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Henkel AG's current stock value. Our valuation model uses many indicators to compare Henkel AG value to that of its competitors to determine the firm's financial worth. Henkel AG Co is one of the top stocks in price to book category among its peers. It also is one of the top stocks in net income category among its peers making up about 1,195,318,215 of Net Income per Price To Book. 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 Henkel AG's earnings, one of the primary drivers of an investment's value.Henkel Net Income vs. Price To Book
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.
Henkel AG |
| = | 1.37 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.
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.
Henkel AG |
| = | 1.63 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.
Henkel Net Income Comparison
Henkel AG is currently under evaluation in net income category among its peers.
Henkel AG Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Henkel AG, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Henkel AG will eventually generate negative long term returns. The profitability progress is the general direction of Henkel AG's change in net profit over the period of time. It can combine multiple indicators of Henkel AG, 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.
KGaA, together with its subsidiaries, engages in the adhesive technologies, beauty care, and laundry and home care businesses worldwide. KGaA was founded in 1876 and is headquartered in Dsseldorf, Germany. Henkel Ag operates under Household Personal Products classification in the United States and is traded on OTC Exchange. It employs 51800 people.
Henkel Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Henkel AG. 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 Henkel AG 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 Henkel AG's important profitability drivers and their relationship over time.
Use Henkel AG 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 Henkel AG 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 Henkel AG will appreciate offsetting losses from the drop in the long position's value.Henkel AG Pair Trading
Henkel AG Co Pair Trading Analysis
The ability to find closely correlated positions to Henkel AG could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Henkel AG 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 Henkel AG - 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 Henkel AG Co to buy it.
The correlation of Henkel AG 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 Henkel AG moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Henkel AG 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 Henkel AG 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 Henkel AG position
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Other Information on Investing in Henkel Pink Sheet
To fully project Henkel AG's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Henkel AG 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 Henkel AG's income statement, its balance sheet, and the statement of cash flows.