LiCycle Holdings Return On Asset vs. Price To Book

LICY Stock  USD 2.34  0.19  8.84%   
Based on LiCycle Holdings' profitability indicators, LiCycle Holdings 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 LiCycle Holdings' ability to earn profits and add value for shareholders. Price To Sales Ratio is likely to drop to 403.52 in 2024. Days Sales Outstanding is likely to drop to 63.19 in 2024. At this time, LiCycle Holdings' Total Other Income Expense Net is fairly stable compared to the past year. Income Tax Expense is likely to rise to about 105 K in 2024, whereas Accumulated Other Comprehensive Income is likely to drop (283.5 K) in 2024.
For LiCycle Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LiCycle Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LiCycle Holdings Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LiCycle Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LiCycle Holdings Corp over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Is Environmental & Facilities Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LiCycle Holdings. If investors know LiCycle will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LiCycle Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.03)
Earnings Share
(5.58)
Revenue Per Share
1.195
Quarterly Revenue Growth
0.787
Return On Assets
(0.09)
The market value of LiCycle Holdings Corp is measured differently than its book value, which is the value of LiCycle that is recorded on the company's balance sheet. Investors also form their own opinion of LiCycle Holdings' value that differs from its market value or its book value, called intrinsic value, which is LiCycle Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LiCycle Holdings' market value can be influenced by many factors that don't directly affect LiCycle Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LiCycle Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if LiCycle Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LiCycle Holdings' 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.

LiCycle Holdings Corp Price To Book vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining LiCycle Holdings's current stock value. Our valuation model uses many indicators to compare LiCycle Holdings value to that of its competitors to determine the firm's financial worth.
LiCycle Holdings Corp is rated below average in return on asset category among its peers. It is rated below average in price to book category among its peers . Price To Book Ratio is likely to drop to 19.62 in 2024. 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 LiCycle Holdings' earnings, one of the primary drivers of an investment's value.

LiCycle Price To Book vs. Return On Asset

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.

LiCycle Holdings

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0933
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.
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.

LiCycle Holdings

P/B

 = 

MV Per Share

BV Per Share

 = 
0.17 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.

LiCycle Price To Book Comparison

LiCycle Holdings is currently under evaluation in price to book category among its peers.

LiCycle Holdings Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in LiCycle Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, LiCycle Holdings will eventually generate negative long term returns. The profitability progress is the general direction of LiCycle Holdings' change in net profit over the period of time. It can combine multiple indicators of LiCycle Holdings, 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-270 K-283.5 K
Operating Income-159.8 M-151.8 M
Income Before Tax-137.9 M-131 M
Total Other Income Expense Net21.9 M23 M
Net Loss-48.2 M-50.7 M
Net Loss-138 M-131.1 M
Income Tax Expense100 K105 K
Net Interest Income5.1 M5.4 M
Interest Income12.7 M13.3 M
Net Loss-138 M-144.9 M
Change To Netincome-44 M-41.8 M
Net Loss(0.89)(0.94)
Income Quality 0.83  0.89 
Net Income Per E B T 0.90  0.82 

LiCycle Profitability Driver Comparison

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

Use LiCycle Holdings 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 LiCycle Holdings 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 LiCycle Holdings will appreciate offsetting losses from the drop in the long position's value.

LiCycle Holdings Pair Trading

LiCycle Holdings Corp Pair Trading Analysis

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

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Absolute Returns ETFs Theme
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Additional Tools for LiCycle Stock Analysis

When running LiCycle Holdings' price analysis, check to measure LiCycle Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy LiCycle Holdings is operating at the current time. Most of LiCycle Holdings' value examination focuses on studying past and present price action to predict the probability of LiCycle Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move LiCycle Holdings' price. Additionally, you may evaluate how the addition of LiCycle Holdings to your portfolios can decrease your overall portfolio volatility.