Lion Electric Return On Equity vs. Return On Asset

LEV Stock  CAD 0.26  0.01  3.70%   
Based on the measurements of profitability obtained from Lion Electric's financial statements, Lion Electric Corp 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 Lion Electric's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
(0.29)
Current Value
(0.30)
Quarterly Volatility
1.71027392
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Lion Electric's Days Sales Outstanding is very stable compared to the past year. As of the 30th of November 2024, Days Of Sales Outstanding is likely to grow to 128.33, while Price To Sales Ratio is likely to drop 1.49. At this time, Lion Electric's Interest Income is very stable compared to the past year. As of the 30th of November 2024, Net Income Applicable To Common Shares is likely to grow to about 21.5 M, though Accumulated Other Comprehensive Income is likely to grow to (13.6 M).
For Lion Electric profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lion Electric to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lion Electric Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lion Electric's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lion Electric Corp 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 Lion Electric's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lion Electric is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lion Electric'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.

Lion Electric Corp Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lion Electric's current stock value. Our valuation model uses many indicators to compare Lion Electric value to that of its competitors to determine the firm's financial worth.
Lion Electric Corp is currently regarded as number one stock in return on equity category among its peers. It also is currently regarded as number one stock in return on asset category among its peers . At this time, Lion Electric's Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Lion Electric by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lion Electric'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.

Lion Return On Asset 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.

Lion Electric

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.38
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.
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.

Lion Electric

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0848
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.

Lion Return On Asset Comparison

Lion Electric is currently under evaluation in return on asset category among its peers.

Lion Electric Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Lion Electric, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lion Electric will eventually generate negative long term returns. The profitability progress is the general direction of Lion Electric's change in net profit over the period of time. It can combine multiple indicators of Lion Electric, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-14.3 M-13.6 M
Interest Income8.6 MM
Operating Income-114.1 M-108.4 M
Income Before Tax-103.8 M-98.6 M
Total Other Income Expense Net-9.2 M-8.8 M
Net Income Applicable To Common Shares20.4 M21.5 M
Net Loss-103.8 M-98.6 M
Net Interest Income-17.9 M-17 M
Net Loss-103.8 M-98.6 M
Income Tax Expense14.9 M15.6 M
Change To Netincome-81.3 M-77.2 M
Net Loss(0.46)(0.49)
Income Quality 1.06  1.11 
Net Income Per E B T 5.89  6.18 

Lion Profitability Driver Comparison

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

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Fundamentals Comparison

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Companies involved in medical and pharmaceutical drug research, manufacturing, and delivery. The Drugs theme has 45 constituents at this time.
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When determining whether Lion Electric Corp is a strong investment it is important to analyze Lion Electric's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Lion Electric's future performance. For an informed investment choice regarding Lion Stock, refer to the following important reports:
Check out Correlation Analysis.
You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
To fully project Lion Electric's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lion Electric 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 Lion Electric's income statement, its balance sheet, and the statement of cash flows.
Potential Lion Electric investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Lion Electric investors may work on each financial statement separately, they are all related. The changes in Lion Electric's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Lion Electric'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.