Koninklijke DSM Profit Margin vs. Return On Equity
| KDSKFDelisted Stock | USD 25.30 0.00 0.00% |
For Koninklijke DSM profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Koninklijke DSM to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Koninklijke DSM NV utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Koninklijke DSM's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Koninklijke DSM NV over time as well as its relative position and ranking within its peers.
Koninklijke |
Koninklijke DSM NV Return On Equity vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Koninklijke DSM's current stock value. Our valuation model uses many indicators to compare Koninklijke DSM value to that of its competitors to determine the firm's financial worth. Koninklijke DSM NV is rated second overall in profit margin category among its peers. It is rated below average in return on equity category among its peers reporting about 1.04 of Return On Equity 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 Koninklijke DSM's earnings, one of the primary drivers of an investment's value.Koninklijke Return On Equity 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.
Koninklijke DSM |
| = | 0.11 % |
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.
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.
Koninklijke DSM |
| = | 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.
Koninklijke Return On Equity Comparison
Koninklijke DSM is currently under evaluation in return on equity category among its peers.
Koninklijke DSM Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Koninklijke DSM, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Koninklijke DSM will eventually generate negative long term returns. The profitability progress is the general direction of Koninklijke DSM's change in net profit over the period of time. It can combine multiple indicators of Koninklijke DSM, 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.
Koninklijke DSM N.V., a science-based company, engages in nutrition, health, and sustainable living businesses in the Netherlands, Switzerland, rest of Europe, North America, Latin America, China, rest of Asia, and internationally. The company was founded in 1902 and is headquartered in Heerlen, the Netherlands. KONINKLIJKE DSM operates under Specialty Chemicals classification in the United States and is traded on OTC Exchange. It employs 21760 people.
Koninklijke Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Koninklijke DSM. 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 Koninklijke DSM 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 Koninklijke DSM's important profitability drivers and their relationship over time.
Use Koninklijke DSM 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 Koninklijke DSM 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 Koninklijke DSM will appreciate offsetting losses from the drop in the long position's value.Koninklijke DSM Pair Trading
Koninklijke DSM NV Pair Trading Analysis
The ability to find closely correlated positions to Koninklijke DSM could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Koninklijke DSM 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 Koninklijke DSM - 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 Koninklijke DSM NV to buy it.
The correlation of Koninklijke DSM 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 Koninklijke DSM moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Koninklijke DSM NV 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 Koninklijke DSM 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 Koninklijke DSM position
In addition to having Koninklijke DSM 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 Pharmaceutical Products Thematic Idea Now
Pharmaceutical Products
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Pharmaceutical Products 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 Pharmaceutical Products Theme or any other thematic opportunities.
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Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in industry. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Consideration for investing in Koninklijke Pink Sheet
If you are still planning to invest in Koninklijke DSM NV check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Koninklijke DSM's history and understand the potential risks before investing.
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