Loblaw Companies Return On Equity vs. Price To Earning
| LBLCF Stock | USD 128.69 1.70 1.34% |
For Loblaw Companies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Loblaw Companies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Loblaw Companies Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Loblaw Companies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Loblaw Companies Limited over time as well as its relative position and ranking within its peers.
Loblaw |
Loblaw Companies Price To Earning vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Loblaw Companies's current stock value. Our valuation model uses many indicators to compare Loblaw Companies value to that of its competitors to determine the firm's financial worth. Loblaw Companies Limited is rated fifth overall in return on equity category among its peers. It is rated second overall in price to earning category among its peers reporting about 183.08 of Price To Earning per Return On Equity. 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 Loblaw Companies' earnings, one of the primary drivers of an investment's value.Loblaw Price To Earning vs. Return On Equity
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.
Loblaw Companies |
| = | 0.19 |
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.
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.
Loblaw Companies |
| = | 35.28 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.
Loblaw Price To Earning Comparison
Loblaw Companies is currently under evaluation in price to earning category among its peers.
Loblaw Companies Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Loblaw Companies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Loblaw Companies will eventually generate negative long term returns. The profitability progress is the general direction of Loblaw Companies' change in net profit over the period of time. It can combine multiple indicators of Loblaw Companies, 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.
Loblaw Companies Limited, a food and pharmacy company, engages in the grocery, pharmacy, health and beauty, apparel, general merchandise, financial services, and wireless mobile products and services businesses in Canada. Loblaw Companies Limited operates as a subsidiary of George Weston Limited. Loblaw Companies is traded on OTC Exchange in the United States.
Loblaw Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Loblaw Companies. 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 Loblaw Companies 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 Loblaw Companies' important profitability drivers and their relationship over time.
Use Loblaw Companies 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 Loblaw Companies 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 Loblaw Companies will appreciate offsetting losses from the drop in the long position's value.Loblaw Companies Pair Trading
Loblaw Companies Limited Pair Trading Analysis
The ability to find closely correlated positions to Loblaw Companies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Loblaw Companies 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 Loblaw Companies - 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 Loblaw Companies Limited to buy it.
The correlation of Loblaw Companies 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 Loblaw Companies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Loblaw Companies 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 Loblaw Companies 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 Loblaw Companies position
In addition to having Loblaw Companies 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?
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Other Information on Investing in Loblaw Pink Sheet
To fully project Loblaw Companies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Loblaw Companies 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 Loblaw Companies' income statement, its balance sheet, and the statement of cash flows.