International Paper Return On Asset vs. Profit Margin
| IP Stock | MXN 883.00 0.00 0.00% |
For International Paper profitability analysis, we use financial ratios and fundamental drivers that measure the ability of International Paper to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well International Paper utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between International Paper's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of International Paper over time as well as its relative position and ranking within its peers.
International |
International Paper Profit Margin vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining International Paper's current stock value. Our valuation model uses many indicators to compare International Paper value to that of its competitors to determine the firm's financial worth. International Paper is currently regarded as number one stock in return on asset category among its peers. It also is currently regarded as number one stock in profit margin category among its peers fabricating about 1.39 of Profit Margin per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value International Paper by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for International Paper'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.International Profit Margin vs. Return On Asset
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.
International Paper |
| = | 0.0512 |
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.
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.
International Paper |
| = | 0.07 % |
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.
International Profit Margin Comparison
International Paper is currently under evaluation in profit margin category among its peers.
International Paper Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in International Paper, profitability is also one of the essential criteria for including it into their portfolios because, without profit, International Paper will eventually generate negative long term returns. The profitability progress is the general direction of International Paper's change in net profit over the period of time. It can combine multiple indicators of International Paper, 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.
International Paper Company operates as a paper and packaging company primarily in North America, Europe, Latin America, North Africa, India, and Russia. International Paper Company was founded in 1898 and is headquartered in Memphis, Tennessee. INTERNATIONAL PAPER operates under Packaging Containers classification in Mexico and is traded on Mexico Stock Exchange. It employs 52000 people.
International Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on International Paper. 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 International Paper 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 International Paper's important profitability drivers and their relationship over time.
Use International Paper 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 International Paper 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 International Paper will appreciate offsetting losses from the drop in the long position's value.International Paper Pair Trading
International Paper Pair Trading Analysis
The ability to find closely correlated positions to International Paper could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace International Paper 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 International Paper - 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 International Paper to buy it.
The correlation of International Paper 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 International Paper moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if International Paper 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 International Paper 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 International Paper position
In addition to having International Paper 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?
Run Oil And Gas Thematic Idea Now
Oil And Gas
Companies involved in drilling, production, and distribution of oil and gas pipelines. The Oil And Gas theme has 38 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 Oil And Gas Theme or any other thematic opportunities.
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Additional Tools for International Stock Analysis
When running International Paper's price analysis, check to measure International Paper'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 International Paper is operating at the current time. Most of International Paper's value examination focuses on studying past and present price action to predict the probability of International Paper's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move International Paper's price. Additionally, you may evaluate how the addition of International Paper to your portfolios can decrease your overall portfolio volatility.