Sims Metal Profit Margin vs. Price To Sales
| I8M Stock | EUR 8.10 0.20 2.53% |
For Sims Metal profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sims Metal to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sims Metal Management utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sims Metal's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sims Metal Management over time as well as its relative position and ranking within its peers.
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Sims Metal Management Price To Sales vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Sims Metal's current stock value. Our valuation model uses many indicators to compare Sims Metal value to that of its competitors to determine the firm's financial worth. Sims Metal Management is currently regarded as number one stock in profit margin category among its peers. It is rated third overall in price to sales category among its peers fabricating about 3.63 of Price To Sales per Profit Margin. 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 Sims Metal's earnings, one of the primary drivers of an investment's value.Sims Price To Sales 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.
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| = | 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.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
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| = | 0.18 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Sims Price To Sales Comparison
Sims Metal is currently under evaluation in price to sales category among its peers.
Sims Metal Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Sims Metal, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sims Metal will eventually generate negative long term returns. The profitability progress is the general direction of Sims Metal's change in net profit over the period of time. It can combine multiple indicators of Sims Metal, 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.
Sims Metal Management Limited engages in buying, processing, and selling ferrous and non-ferrous recycled metals. Sims Metal Management Limited was founded in 1917 and is headquartered in Rye, New York. Sims Metal operates under Steel classification in Germany and is traded on Frankfurt Stock Exchange. It employs 5278 people.
Sims Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Sims Metal. 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 Sims Metal 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 Sims Metal's important profitability drivers and their relationship over time.
Use Sims Metal 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 Sims Metal 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 Sims Metal will appreciate offsetting losses from the drop in the long position's value.Sims Metal Pair Trading
Sims Metal Management Pair Trading Analysis
The ability to find closely correlated positions to Sims Metal could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sims Metal 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 Sims Metal - 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 Sims Metal Management to buy it.
The correlation of Sims Metal 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 Sims Metal moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sims Metal Management 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 Sims Metal 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 Sims Metal position
In addition to having Sims Metal 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 Sims Stock
To fully project Sims Metal's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sims Metal Management 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 Sims Metal's income statement, its balance sheet, and the statement of cash flows.