Henkel AG Operating Margin vs. Profit Margin
| HENKY Stock | USD 18.93 0.04 0.21% |
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 Profit Margin vs. Operating Margin 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 rated below average in operating margin category among its peers. It is rated below average in profit margin category among its peers fabricating about 0.54 of Profit Margin per Operating Margin. The ratio of Operating Margin to Profit Margin for Henkel AG Co is roughly 1.84 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Henkel AG by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Henkel AG'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.Henkel Profit Margin 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.
Henkel AG |
| = | 0.1 % |
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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Henkel AG |
| = | 0.05 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Henkel Profit Margin Comparison
Henkel AG is currently under evaluation in profit margin 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
In addition to having Henkel AG 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 Henkel Pink Sheet Analysis
When running Henkel AG's price analysis, check to measure Henkel AG'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 Henkel AG is operating at the current time. Most of Henkel AG's value examination focuses on studying past and present price action to predict the probability of Henkel AG's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Henkel AG's price. Additionally, you may evaluate how the addition of Henkel AG to your portfolios can decrease your overall portfolio volatility.