Herms International Return On Equity vs. Net Income
| HMI Stock | EUR 2,309 11.00 0.48% |
For Herms International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Herms International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Herms International Socit utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Herms International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Herms International Socit over time as well as its relative position and ranking within its peers.
Herms |
Herms International Socit Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Herms International's current stock value. Our valuation model uses many indicators to compare Herms International value to that of its competitors to determine the firm's financial worth. Herms International Socit is rated # 3 in return on equity category among its peers. It is rated # 4 in net income category among its peers making up about 7,910,061,469 of Net Income per Return On Equity. 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 Herms International's earnings, one of the primary drivers of an investment's value.Herms Net Income vs. Return On Equity
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.
Herms International |
| = | 0.31 |
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.
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.
Herms International |
| = | 2.44 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.
Herms Net Income Comparison
Herms International is rated # 3 in net income category among its peers.
Herms International Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Herms International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Herms International will eventually generate negative long term returns. The profitability progress is the general direction of Herms International's change in net profit over the period of time. It can combine multiple indicators of Herms International, 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.
Herms International Socit en commandite par actions engages in the production, wholesale, and retail of various goods. Herms International Socit en commandite par actions is a subsidiary of H51 SAS. HERMES INTERNATIONAL is traded on Frankfurt Stock Exchange in Germany.
Herms Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Herms International. 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 Herms International 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 Herms International's important profitability drivers and their relationship over time.
Use Herms International 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 Herms International 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 Herms International will appreciate offsetting losses from the drop in the long position's value.Herms International Pair Trading
Herms International Socit Pair Trading Analysis
The ability to find closely correlated positions to Herms International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Herms International 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 Herms International - 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 Herms International Socit to buy it.
The correlation of Herms International 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 Herms International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Herms International Socit 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 Herms International 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 Herms International position
In addition to having Herms International 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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Other Information on Investing in Herms Stock
To fully project Herms International's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Herms International Socit 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 Herms International's income statement, its balance sheet, and the statement of cash flows.