Komatsu Profit Margin vs. Return On Asset
| KMTUY Stock | USD 27.30 0.17 0.62% |
For Komatsu profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Komatsu to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Komatsu utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Komatsu's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Komatsu over time as well as its relative position and ranking within its peers.
Komatsu |
Komatsu Return On Asset vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Komatsu's current stock value. Our valuation model uses many indicators to compare Komatsu value to that of its competitors to determine the firm's financial worth. Komatsu is currently regarded as number one stock in profit margin category among its peers. It also is currently regarded as number one stock in return on asset category among its peers reporting about 0.68 of Return On Asset per Profit Margin. The ratio of Profit Margin to Return On Asset for Komatsu is roughly 1.47 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Komatsu by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Komatsu's Pink Sheet. 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.Komatsu Return On Asset 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.
Komatsu |
| = | 0.09 % |
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 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.
Komatsu |
| = | 0.0617 |
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.
Komatsu Return On Asset Comparison
Komatsu is currently under evaluation in return on asset category among its peers.
Komatsu Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Komatsu, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Komatsu will eventually generate negative long term returns. The profitability progress is the general direction of Komatsu's change in net profit over the period of time. It can combine multiple indicators of Komatsu, 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.
Komatsu Ltd. manufactures and sells construction, mining, and utility equipment and forest and industrial machinery worldwide. Komatsu Ltd. was founded in 1884 and is headquartered in Tokyo, Japan. Komatsu operates under Farm Heavy Construction Machinery classification in the United States and is traded on OTC Exchange. It employs 62774 people.
Komatsu Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Komatsu. 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 Komatsu 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 Komatsu's important profitability drivers and their relationship over time.
Use Komatsu 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 Komatsu 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 Komatsu will appreciate offsetting losses from the drop in the long position's value.Komatsu Pair Trading
Komatsu Pair Trading Analysis
The ability to find closely correlated positions to Komatsu could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Komatsu 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 Komatsu - 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 Komatsu to buy it.
The correlation of Komatsu 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 Komatsu moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Komatsu 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 Komatsu 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 Komatsu position
In addition to having Komatsu 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 Beer and Liquor Thematic Idea Now
Beer and Liquor
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Beer and Liquor theme has 32 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 Beer and Liquor Theme or any other thematic opportunities.
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Additional Tools for Komatsu Pink Sheet Analysis
When running Komatsu's price analysis, check to measure Komatsu'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 Komatsu is operating at the current time. Most of Komatsu's value examination focuses on studying past and present price action to predict the probability of Komatsu's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Komatsu's price. Additionally, you may evaluate how the addition of Komatsu to your portfolios can decrease your overall portfolio volatility.