KONE Oyj Operating Margin vs. Price To Earning

KNYJF Stock  USD 50.80  0.28  0.55%   
Taking into consideration KONE Oyj's profitability measurements, KONE Oyj may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess KONE Oyj's ability to earn profits and add value for shareholders.
For KONE Oyj profitability analysis, we use financial ratios and fundamental drivers that measure the ability of KONE Oyj to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well KONE Oyj utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between KONE Oyj's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of KONE Oyj over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between KONE Oyj's value and its price as these two are different measures arrived at by different means. Investors typically determine if KONE Oyj is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, KONE Oyj'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.

KONE Oyj Price To Earning vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining KONE Oyj's current stock value. Our valuation model uses many indicators to compare KONE Oyj value to that of its competitors to determine the firm's financial worth.
KONE Oyj is currently regarded as number one stock in operating margin category among its peers. It is rated fourth overall in price to earning category among its peers reporting about  212.46  of Price To Earning per Operating 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 KONE Oyj's earnings, one of the primary drivers of an investment's value.

KONE Price To Earning 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.

KONE Oyj

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.1 %
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 Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

KONE Oyj

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
20.97 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

KONE Price To Earning Comparison

KONE Oyj is currently under evaluation in price to earning category among its peers.

KONE Oyj Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in KONE Oyj, profitability is also one of the essential criteria for including it into their portfolios because, without profit, KONE Oyj will eventually generate negative long term returns. The profitability progress is the general direction of KONE Oyj's change in net profit over the period of time. It can combine multiple indicators of KONE Oyj, 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.
KONE Oyj, together with its subsidiaries, engages in the elevator and escalator business worldwide. Further, the company provides people flow planning and consulting services and solutions for special buildings and large projects. Kone Oyj operates under Specialty Industrial Machinery classification in the United States and is traded on OTC Exchange. It employs 63106 people.

KONE Profitability Driver Comparison

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

Use KONE Oyj 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 KONE Oyj 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 KONE Oyj will appreciate offsetting losses from the drop in the long position's value.

KONE Oyj Pair Trading

KONE Oyj Pair Trading Analysis

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

In addition to having KONE Oyj 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.

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Run Alcohol Thematic Idea Now

Alcohol
Alcohol Theme
Companies involved in production and distribution of wines and alcoholic beverages. The Alcohol theme has 37 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 Alcohol Theme or any other thematic opportunities.
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Other Information on Investing in KONE Pink Sheet

To fully project KONE Oyj's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of KONE Oyj 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 KONE Oyj's income statement, its balance sheet, and the statement of cash flows.
Potential KONE Oyj investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although KONE Oyj investors may work on each financial statement separately, they are all related. The changes in KONE Oyj's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on KONE Oyj'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.