Katahdin Bankshares Price To Earning vs. Return On Equity

KTHN Stock  USD 25.00  0.45  1.83%   
Based on Katahdin Bankshares' profitability indicators, Katahdin Bankshares Corp may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Katahdin Bankshares' ability to earn profits and add value for shareholders.
For Katahdin Bankshares profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Katahdin Bankshares to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Katahdin Bankshares Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Katahdin Bankshares's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Katahdin Bankshares Corp over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Katahdin Bankshares' value and its price as these two are different measures arrived at by different means. Investors typically determine if Katahdin Bankshares is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Katahdin Bankshares' 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.

Katahdin Bankshares Corp Return On Equity vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Katahdin Bankshares's current stock value. Our valuation model uses many indicators to compare Katahdin Bankshares value to that of its competitors to determine the firm's financial worth.
Katahdin Bankshares Corp is rated below average in price to earning category among its peers. It is rated fourth overall in return on equity category among its peers reporting about  0.02  of Return On Equity per Price To Earning. The ratio of Price To Earning to Return On Equity for Katahdin Bankshares Corp is roughly  59.78 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Katahdin Bankshares by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Katahdin Bankshares' OTC 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.

Katahdin Return On Equity vs. Price To Earning

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.

Katahdin Bankshares

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
7.12 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.
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.

Katahdin Bankshares

Return On Equity

 = 

Net Income

Total Equity

 = 
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.

Katahdin Return On Equity Comparison

Katahdin Bankshares is currently under evaluation in return on equity category among its peers.

Katahdin Bankshares Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Katahdin Bankshares, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Katahdin Bankshares will eventually generate negative long term returns. The profitability progress is the general direction of Katahdin Bankshares' change in net profit over the period of time. It can combine multiple indicators of Katahdin Bankshares, 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.
Katahdin Bankshares Corp. operates as the bank holding company for Katahdin Trust Company, a state-chartered commercial bank that provides a range of commercial and retail banking services for individuals and businesses in Maine. The company was founded in 1918 and is based in Patten, Maine. Katahdin Bankshs operates under BanksRegional classification in the United States and is traded on OTC Exchange. It employs 162 people.

Katahdin Profitability Driver Comparison

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

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Other Information on Investing in Katahdin OTC Stock

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