HEXAGON AB Cash Per Share vs. Return On Asset

HXGC Stock  EUR 8.05  0.10  1.26%   
Based on the measurements of profitability obtained from HEXAGON AB's financial statements, HEXAGON AB ADR1 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 HEXAGON AB's ability to earn profits and add value for shareholders.
For HEXAGON AB profitability analysis, we use financial ratios and fundamental drivers that measure the ability of HEXAGON AB to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well HEXAGON AB ADR1 utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between HEXAGON AB's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of HEXAGON AB ADR1 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 HEXAGON AB's value and its price as these two are different measures arrived at by different means. Investors typically determine if HEXAGON AB is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HEXAGON AB'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.

HEXAGON AB ADR1 Return On Asset vs. Cash Per Share Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining HEXAGON AB's current stock value. Our valuation model uses many indicators to compare HEXAGON AB value to that of its competitors to determine the firm's financial worth.
HEXAGON AB ADR1 is rated # 3 in cash per share category among its peers. It is rated # 2 in return on asset category among its peers reporting about  0.04  of Return On Asset per Cash Per Share. The ratio of Cash Per Share to Return On Asset for HEXAGON AB ADR1 is roughly  23.00 . 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 HEXAGON AB's earnings, one of the primary drivers of an investment's value.

HEXAGON Return On Asset vs. Cash Per Share

Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.

HEXAGON AB

Cash Per Share

 = 

Total Cash

Average Shares

 = 
1.21 X
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

HEXAGON AB

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0526
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

HEXAGON Return On Asset Comparison

HEXAGON AB is currently under evaluation in return on asset category among its peers.

HEXAGON AB Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in HEXAGON AB, profitability is also one of the essential criteria for including it into their portfolios because, without profit, HEXAGON AB will eventually generate negative long term returns. The profitability progress is the general direction of HEXAGON AB's change in net profit over the period of time. It can combine multiple indicators of HEXAGON AB, 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.
Hexagon AB provides information technology solutions for geospatial and industrial applications worldwide. Hexagon AB was incorporated in 1975 and is headquartered in Stockholm, Sweden. HEXAGON AB operates under Scientific Technical Instruments classification in Germany and is traded on Frankfurt Stock Exchange. It employs 20905 people.

HEXAGON Profitability Driver Comparison

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

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

HEXAGON AB Pair Trading

HEXAGON AB ADR1 Pair Trading Analysis

The ability to find closely correlated positions to HEXAGON AB could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace HEXAGON AB 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 HEXAGON AB - 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 HEXAGON AB ADR1 to buy it.
The correlation of HEXAGON AB 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 HEXAGON AB moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if HEXAGON AB ADR1 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 HEXAGON AB 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

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Other Information on Investing in HEXAGON Stock

To fully project HEXAGON AB's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of HEXAGON AB ADR1 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 HEXAGON AB's income statement, its balance sheet, and the statement of cash flows.
Potential HEXAGON AB investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although HEXAGON AB investors may work on each financial statement separately, they are all related. The changes in HEXAGON AB's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on HEXAGON AB'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.