Hyundai Return On Equity vs. Profit Margin

HYMTF Stock  USD 55.03  0.32  0.58%   
Considering the key profitability indicators obtained from Hyundai's historical financial statements, Hyundai Motor Co may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Hyundai's ability to earn profits and add value for shareholders.
For Hyundai profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hyundai to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hyundai Motor Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hyundai's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hyundai Motor Co over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Hyundai's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hyundai is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hyundai'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.

Hyundai Motor Profit Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hyundai's current stock value. Our valuation model uses many indicators to compare Hyundai value to that of its competitors to determine the firm's financial worth.
Hyundai Motor Co is rated below average in return on equity category among its peers. It is rated # 4 in profit margin category among its peers fabricating about  0.58  of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Hyundai Motor Co is roughly  1.73 . 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 Hyundai's earnings, one of the primary drivers of an investment's value.

Hyundai Profit Margin 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.

Hyundai

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0796
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.
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.

Hyundai

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.05 %
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.

Hyundai Profit Margin Comparison

Hyundai is currently under evaluation in profit margin category among its peers.

Hyundai Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hyundai, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hyundai will eventually generate negative long term returns. The profitability progress is the general direction of Hyundai's change in net profit over the period of time. It can combine multiple indicators of Hyundai, 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.
Hyundai Motor Company, together with its subsidiaries, manufactures and distributes motor vehicles and parts worldwide. Hyundai Motor Company was incorporated in 1967 and is headquartered in Seoul, South Korea. Hyundai operates under Auto Manufacturers classification in the United States and is traded on OTC Exchange. It employs 64054 people.

Hyundai Profitability Driver Comparison

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

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Our tools can tell you how much better you can do entering a position in Hyundai without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Use Investing Themes to Complement your Hyundai position

In addition to having Hyundai 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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Stores Theme
Companies providing different types of retail and wholesale services. The Stores theme has 39 constituents at this time.
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Other Information on Investing in Hyundai Pink Sheet

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