Hufvudstaden Net Income vs. Return On Equity

HUFV-A Stock  SEK 125.30  1.30  1.05%   
Considering Hufvudstaden's profitability and operating efficiency indicators, Hufvudstaden AB may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Hufvudstaden's ability to earn profits and add value for shareholders.
For Hufvudstaden profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hufvudstaden to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hufvudstaden AB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hufvudstaden's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hufvudstaden AB over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Please note, there is a significant difference between Hufvudstaden's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hufvudstaden is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hufvudstaden's 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.

Hufvudstaden AB Return On Equity vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hufvudstaden's current stock value. Our valuation model uses many indicators to compare Hufvudstaden value to that of its competitors to determine the firm's financial worth.
Hufvudstaden AB is one of the top stocks in net income category among its peers. It also is one of the top stocks in return on equity category among its peers . The ratio of Net Income to Return On Equity for Hufvudstaden AB is about  32,909,799,555 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Hufvudstaden by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hufvudstaden's Stock. 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.

Hufvudstaden Return On Equity vs. Net Income

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.

Hufvudstaden

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
2.96 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.
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.

Hufvudstaden

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0898
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.

Hufvudstaden Return On Equity Comparison

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

Hufvudstaden Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hufvudstaden, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hufvudstaden will eventually generate negative long term returns. The profitability progress is the general direction of Hufvudstaden's change in net profit over the period of time. It can combine multiple indicators of Hufvudstaden, 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.
Hufvudstaden AB engages in the ownership, development, and management of commercial properties in Stockholm and Gothenburg, Sweden. The company was founded in 1915 and is based in Stockholm, Sweden. Hufvudstaden operates under Real EstateDiversified classification in Sweden and is traded on Stockholm Stock Exchange. It employs 135 people.

Hufvudstaden Profitability Driver Comparison

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

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

Hufvudstaden Pair Trading

Hufvudstaden AB Pair Trading Analysis

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

In addition to having Hufvudstaden 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.

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Other Information on Investing in Hufvudstaden Stock

To fully project Hufvudstaden's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hufvudstaden AB 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 Hufvudstaden's income statement, its balance sheet, and the statement of cash flows.
Potential Hufvudstaden investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Hufvudstaden investors may work on each financial statement separately, they are all related. The changes in Hufvudstaden's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Hufvudstaden's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.