Lapidoth Price To Book vs. Return On Equity

LAPD Stock  ILS 6,480  73.00  1.11%   
Considering the key profitability indicators obtained from Lapidoth's historical financial statements, Lapidoth may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess Lapidoth's ability to earn profits and add value for shareholders.
For Lapidoth profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lapidoth to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lapidoth utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lapidoth's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lapidoth 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 Lapidoth's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lapidoth is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lapidoth'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.

Lapidoth Return On Equity vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lapidoth's current stock value. Our valuation model uses many indicators to compare Lapidoth value to that of its competitors to determine the firm's financial worth.
Lapidoth is currently regarded as number one stock in price to book category among its peers. It also is currently regarded as number one stock in return on equity category among its peers reporting about  0.10  of Return On Equity per Price To Book. The ratio of Price To Book to Return On Equity for Lapidoth is roughly  9.72 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Lapidoth by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lapidoth'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.

Lapidoth Return On Equity vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Lapidoth

P/B

 = 

MV Per Share

BV Per Share

 = 
2.26 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.

Lapidoth

Return On Equity

 = 

Net Income

Total Equity

 = 
0.23
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.

Lapidoth Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Lapidoth, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lapidoth will eventually generate negative long term returns. The profitability progress is the general direction of Lapidoth's change in net profit over the period of time. It can combine multiple indicators of Lapidoth, 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.
Lapidoth Capital Ltd, together with its subsidiaries, provides drilling and related services in Israel. Lapidoth Capital Ltd was founded in 1959 and is based in Tel Aviv, Israel. LAPIDOTH CAP is traded on Tel Aviv Stock Exchange in Israel.

Lapidoth Profitability Driver Comparison

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

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Other Information on Investing in Lapidoth Stock

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