IDI Insurance Return On Equity vs. Profit Margin
| IDIN Stock | ILS 13,280 120.00 0.91% |
For IDI Insurance profitability analysis, we use financial ratios and fundamental drivers that measure the ability of IDI Insurance to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well IDI Insurance utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between IDI Insurance's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of IDI Insurance over time as well as its relative position and ranking within its peers.
IDI |
IDI Insurance Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining IDI Insurance's current stock value. Our valuation model uses many indicators to compare IDI Insurance value to that of its competitors to determine the firm's financial worth. IDI Insurance is rated third overall in return on equity category among its peers. It is currently regarded as number one stock in profit margin category among its peers fabricating about 0.38 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for IDI Insurance is roughly 2.66 . Comparative valuation analysis is a catch-all model that can be used if you cannot value IDI Insurance by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for IDI Insurance'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.IDI 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.
IDI Insurance |
| = | 0.12 |
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.
IDI Insurance |
| = | 0.04 % |
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.
IDI Profit Margin Comparison
IDI Insurance is currently under evaluation in profit margin category among its peers.
IDI Insurance Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in IDI Insurance, profitability is also one of the essential criteria for including it into their portfolios because, without profit, IDI Insurance will eventually generate negative long term returns. The profitability progress is the general direction of IDI Insurance's change in net profit over the period of time. It can combine multiple indicators of IDI Insurance, 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.
Insurance Company Ltd. provides insurance products and services to individuals and corporate customers in Israel. Insurance Company Ltd. is a subsidiary of Direct I.D.I Holdings Ltd. I D operates under Insurance - Diversified classification in Israel and is traded on Tel Aviv Stock Exchange.
IDI Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on IDI Insurance. 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 IDI Insurance 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 IDI Insurance's important profitability drivers and their relationship over time.
Use IDI Insurance 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 IDI Insurance 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 IDI Insurance will appreciate offsetting losses from the drop in the long position's value.IDI Insurance Pair Trading
IDI Insurance Pair Trading Analysis
The ability to find closely correlated positions to IDI Insurance could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace IDI Insurance 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 IDI Insurance - 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 IDI Insurance to buy it.
The correlation of IDI Insurance 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 IDI Insurance moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if IDI Insurance 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 IDI Insurance 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 IDI Insurance position
In addition to having IDI Insurance 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 IDI Stock
To fully project IDI Insurance's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of IDI Insurance 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 IDI Insurance's income statement, its balance sheet, and the statement of cash flows.