Highwoods Properties Profit Margin vs. Return On Equity

HIW Stock  USD 32.46  0.01  0.03%   
Based on Highwoods Properties' profitability indicators, Highwoods Properties' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Highwoods Properties' ability to earn profits and add value for shareholders.

Highwoods Properties Net Profit Margin

0.0707

At this time, Highwoods Properties' Price To Sales Ratio is fairly stable compared to the past year. Days Sales Outstanding is likely to climb to 157.87 in 2024, whereas EV To Sales is likely to drop 6.66 in 2024. At this time, Highwoods Properties' Income Tax Expense is fairly stable compared to the past year. Net Income From Continuing Ops is likely to climb to about 161.1 M in 2024, whereas Operating Income is likely to drop slightly above 170.8 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.740.6777
Significantly Up
Slightly volatile
Net Profit Margin0.230.1783
Significantly Up
Very volatile
Operating Profit Margin0.420.2687
Way Up
Pretty Stable
Pretax Profit Margin0.160.1815
Fairly Down
Very volatile
Return On Assets0.02350.0248
Notably Down
Very volatile
Return On Equity0.05380.0611
Fairly Down
Very volatile
For Highwoods Properties profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Highwoods Properties to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Highwoods Properties utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Highwoods Properties's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Highwoods Properties over time as well as its relative position and ranking within its peers.
  

Highwoods Properties' Revenue Breakdown by Earning Segment

Check out Risk vs Return Analysis.
For more information on how to buy Highwoods Stock please use our How to Invest in Highwoods Properties guide.
Is Diversified REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Highwoods Properties. If investors know Highwoods will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Highwoods Properties listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.34)
Dividend Share
2
Earnings Share
1.34
Revenue Per Share
7.833
Quarterly Revenue Growth
(0.01)
The market value of Highwoods Properties is measured differently than its book value, which is the value of Highwoods that is recorded on the company's balance sheet. Investors also form their own opinion of Highwoods Properties' value that differs from its market value or its book value, called intrinsic value, which is Highwoods Properties' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Highwoods Properties' market value can be influenced by many factors that don't directly affect Highwoods Properties' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Highwoods Properties' value and its price as these two are different measures arrived at by different means. Investors typically determine if Highwoods Properties is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Highwoods Properties' 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.

Highwoods Properties Return On Equity vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Highwoods Properties's current stock value. Our valuation model uses many indicators to compare Highwoods Properties value to that of its competitors to determine the firm's financial worth.
Highwoods Properties is rated # 4 in profit margin category among its peers. It is rated # 2 in return on equity category among its peers reporting about  0.34  of Return On Equity per Profit Margin. The ratio of Profit Margin to Return On Equity for Highwoods Properties is roughly  2.92 . At this time, Highwoods Properties' Net Profit Margin is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Highwoods Properties by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Highwoods Return On Equity vs. Profit Margin

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.

Highwoods Properties

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.17 %
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.
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.

Highwoods Properties

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0594
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.

Highwoods Return On Equity Comparison

Highwoods Properties is currently under evaluation in return on equity category among its peers.

Highwoods Properties Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Highwoods Properties, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Highwoods Properties will eventually generate negative long term returns. The profitability progress is the general direction of Highwoods Properties' change in net profit over the period of time. It can combine multiple indicators of Highwoods Properties, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-2 M-2.1 M
Operating Income224.1 M170.8 M
Net Income151.3 M136.3 M
Income Tax Expense144.9 M152.1 M
Income Before Tax151.3 M139.2 M
Total Other Income Expense Net-72.7 M-69.1 M
Net Income Applicable To Common Shares180.1 M133.6 M
Net Income From Continuing Ops141.1 M161.1 M
Non Operating Income Net Other76.6 M64 M
Interest Income119.4 M125.4 M
Net Interest Income-131 M-137.5 M
Change To Netincome-74.8 M-78.6 M
Net Income Per Share 1.41  1.22 
Income Quality 2.56  2.71 
Net Income Per E B T 0.98  1.03 

Highwoods Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Highwoods Properties. 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 Highwoods Properties 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 Highwoods Properties' important profitability drivers and their relationship over time.

Use Highwoods Properties 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 Highwoods Properties 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 Highwoods Properties will appreciate offsetting losses from the drop in the long position's value.

Highwoods Properties Pair Trading

Highwoods Properties Pair Trading Analysis

The ability to find closely correlated positions to Highwoods Properties could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Highwoods Properties 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 Highwoods Properties - 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 Highwoods Properties to buy it.
The correlation of Highwoods Properties 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 Highwoods Properties moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Highwoods Properties 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 Highwoods Properties 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Highwoods Properties position

In addition to having Highwoods Properties 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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Munis Funds
Munis Funds Theme
Funds or Etfs that invest in fixed income securities issued by states, cities, and towns as well as other public entities. The Munis Funds theme has 38 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 Munis Funds Theme or any other thematic opportunities.
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Additional Tools for Highwoods Stock Analysis

When running Highwoods Properties' price analysis, check to measure Highwoods Properties' 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 Highwoods Properties is operating at the current time. Most of Highwoods Properties' value examination focuses on studying past and present price action to predict the probability of Highwoods Properties' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Highwoods Properties' price. Additionally, you may evaluate how the addition of Highwoods Properties to your portfolios can decrease your overall portfolio volatility.