Taking into consideration IGM Financial's profitability measurements, IGM Financial is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in December. Profitability indicators assess IGM Financial's ability to earn profits and add value for shareholders.
For IGM Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of IGM Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well IGM Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between IGM Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of IGM Financial over time as well as its relative position and ranking within its peers.
Please note, there is a significant difference between IGM Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if IGM Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, IGM Financial'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.
IGM Financial Price To Sales vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining IGM Financial's current stock value. Our valuation model uses many indicators to compare IGM Financial value to that of its competitors to determine the firm's financial worth.
IGM Financial is currently regarded as number one stock in operating margin category among its peers. It is rated second overall in price to sales category among its peers fabricating about 8.17 of Price To Sales per Operating Margin. At this time, IGM Financial's Operating Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value IGM Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for IGM Financial'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.
IGM Price To Sales vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
IGM Financial
Operating Margin
=
Operating Income
Revenue
X
100
=
0.37 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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.
IGM Financial
P/S
=
MV Per Share
Revenue Per Share
=
3.00 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.
IGM Price To Sales Comparison
IGM Financial is currently under evaluation in price to sales category among its peers.
IGM Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in IGM Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, IGM Financial will eventually generate negative long term returns. The profitability progress is the general direction of IGM Financial's change in net profit over the period of time. It can combine multiple indicators of IGM Financial, 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.
Profitability drivers are factors that can directly affect your investment outlook on IGM Financial. 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 IGM Financial 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 IGM Financial's important profitability drivers and their relationship over time.
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 IGM Financial 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 IGM Financial will appreciate offsetting losses from the drop in the long position's value.
IGM Financial Pair Trading
IGM Financial Pair Trading Analysis
The ability to find closely correlated positions to IGM Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace IGM Financial 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 IGM Financial - 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 IGM Financial to buy it.
The correlation of IGM Financial 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 IGM Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if IGM Financial 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 IGM Financial 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.
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To fully project IGM Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of IGM Financial 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 IGM Financial's income statement, its balance sheet, and the statement of cash flows.
Potential IGM Financial investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although IGM Financial investors may work on each financial statement separately, they are all related. The changes in IGM Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on IGM Financial'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.
