IHS Holding Return On Equity vs. Return On Asset

IHS Stock  USD 2.96  0.09  3.14%   
Considering the key profitability indicators obtained from IHS Holding's historical financial statements, IHS Holding's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess IHS Holding's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
(17.99)
Current Value
(17.09)
Quarterly Volatility
6.11371999
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, IHS Holding's EV To Sales is comparatively stable compared to the past year. Sales General And Administrative To Revenue is likely to gain to 0.30 in 2024, whereas Price To Sales Ratio is likely to drop 0.68 in 2024. At this time, IHS Holding's Accumulated Other Comprehensive Income is comparatively stable compared to the past year. Operating Income is likely to gain to about 557.2 M in 2024, despite the fact that Total Other Income Expense Net is likely to grow to (2.3 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.520.4722
Significantly Up
Pretty Stable
For IHS Holding profitability analysis, we use financial ratios and fundamental drivers that measure the ability of IHS Holding to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well IHS Holding utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between IHS Holding's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of IHS Holding over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
For more information on how to buy IHS Stock please use our How to Invest in IHS Holding guide.
Is Diversified Telecommunication Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of IHS Holding. If investors know IHS will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about IHS Holding listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.40)
Earnings Share
(7.00)
Revenue Per Share
5.354
Quarterly Revenue Growth
(0.10)
Return On Assets
0.0656
The market value of IHS Holding is measured differently than its book value, which is the value of IHS that is recorded on the company's balance sheet. Investors also form their own opinion of IHS Holding's value that differs from its market value or its book value, called intrinsic value, which is IHS Holding's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because IHS Holding's market value can be influenced by many factors that don't directly affect IHS Holding's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between IHS Holding's value and its price as these two are different measures arrived at by different means. Investors typically determine if IHS Holding is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, IHS Holding'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.

IHS Holding Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining IHS Holding's current stock value. Our valuation model uses many indicators to compare IHS Holding value to that of its competitors to determine the firm's financial worth.
IHS Holding is rated below average in return on equity category among its peers. It is rated fourth overall in return on asset category among its peers . At this time, IHS Holding's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value IHS Holding by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

IHS Return On Asset 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.

IHS Holding

Return On Equity

 = 

Net Income

Total Equity

 = 
-21.42
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.
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.

IHS Holding

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0656
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.

IHS Return On Asset Comparison

IHS Holding is currently under evaluation in return on asset category among its peers.

IHS Holding Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in IHS Holding, profitability is also one of the essential criteria for including it into their portfolios because, without profit, IHS Holding will eventually generate negative long term returns. The profitability progress is the general direction of IHS Holding's change in net profit over the period of time. It can combine multiple indicators of IHS Holding, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income8.4 M8.9 M
Operating Income530.7 M557.2 M
Income Before Tax-1.9 B-1.8 B
Total Other Income Expense Net-2.4 B-2.3 B
Net Loss-2 B-1.9 B
Income Tax Expense107.5 M112.9 M
Net Loss-529.5 M-556 M
Net Interest Income-439.4 M-461.4 M
Interest Income25 M16 M
Net Loss-2 B-1.9 B
Change To Netincome1.1 B669 M
Net Loss(5.93)(5.64)
Income Quality(0.29)(0.31)
Net Income Per E B T 1.05  0.91 

IHS Profitability Driver Comparison

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

Use IHS Holding 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 IHS Holding 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 IHS Holding will appreciate offsetting losses from the drop in the long position's value.

IHS Holding Pair Trading

IHS Holding Pair Trading Analysis

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

Use Investing Themes to Complement your IHS Holding position

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Precious Metals
Precious Metals Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Precious Metals theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Precious Metals Theme or any other thematic opportunities.
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Additional Tools for IHS Stock Analysis

When running IHS Holding's price analysis, check to measure IHS Holding's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy IHS Holding is operating at the current time. Most of IHS Holding's value examination focuses on studying past and present price action to predict the probability of IHS Holding's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move IHS Holding's price. Additionally, you may evaluate how the addition of IHS Holding to your portfolios can decrease your overall portfolio volatility.