KHD Humboldt Gross Profit vs. Return On Equity
| HETA Stock | EUR 7.90 0.90 10.23% |
For KHD Humboldt profitability analysis, we use financial ratios and fundamental drivers that measure the ability of KHD Humboldt to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well KHD Humboldt Wedag utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between KHD Humboldt's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of KHD Humboldt Wedag over time as well as its relative position and ranking within its peers.
KHD |
KHD Humboldt Wedag Return On Equity vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining KHD Humboldt's current stock value. Our valuation model uses many indicators to compare KHD Humboldt value to that of its competitors to determine the firm's financial worth. KHD Humboldt Wedag is one of the top stocks in gross profit category among its peers. It also is one of the top stocks in return on equity category among its peers . 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 KHD Humboldt's earnings, one of the primary drivers of an investment's value.KHD Return On Equity vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
KHD Humboldt |
| = | (4.4 K) |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
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.
KHD Humboldt |
| = | 0.006 |
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.
KHD Return On Equity Comparison
KHD Humboldt is currently under evaluation in return on equity category among its peers.
KHD Humboldt Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in KHD Humboldt, profitability is also one of the essential criteria for including it into their portfolios because, without profit, KHD Humboldt will eventually generate negative long term returns. The profitability progress is the general direction of KHD Humboldt's change in net profit over the period of time. It can combine multiple indicators of KHD Humboldt, 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.
KHD Humboldt Wedag Vermgensverwaltungs-AG provides industrial plant equipment and services for the cement and mining industries in Germany. The company was formerly known as KHD Humboldt Wedag Industrial Services AG and changed its name to KHD Humboldt Wedag Vermgensverwaltungs-AG in July 2017. KHD Humboldt is traded on Frankfurt Stock Exchange in Germany.
KHD Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on KHD Humboldt. 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 KHD Humboldt 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 KHD Humboldt's important profitability drivers and their relationship over time.
Use KHD Humboldt 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 KHD Humboldt 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 KHD Humboldt will appreciate offsetting losses from the drop in the long position's value.KHD Humboldt Pair Trading
KHD Humboldt Wedag Pair Trading Analysis
The ability to find closely correlated positions to KHD Humboldt could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace KHD Humboldt 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 KHD Humboldt - 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 KHD Humboldt Wedag to buy it.
The correlation of KHD Humboldt 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 KHD Humboldt moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if KHD Humboldt Wedag 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 KHD Humboldt 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 KHD Humboldt position
In addition to having KHD Humboldt 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 Cars Thematic Idea Now
Cars
Domestic and international companies involved in manufacturing and serving automobiles and trucks. The Cars theme has 47 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 Cars Theme or any other thematic opportunities.
| View All Next | Launch |
Other Information on Investing in KHD Stock
To fully project KHD Humboldt's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of KHD Humboldt Wedag 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 KHD Humboldt's income statement, its balance sheet, and the statement of cash flows.