LOréal SA Revenue vs. Return On Equity
| LOR Stock | 363.50 7.00 1.96% |
For LOréal SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LOréal SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LOral SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LOréal SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LOral SA over time as well as its relative position and ranking within its peers.
LOréal |
LOréal SA Return On Equity vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining LOréal SA's current stock value. Our valuation model uses many indicators to compare LOréal SA value to that of its competitors to determine the firm's financial worth. LOral SA is rated second overall in revenue category among its peers. It is currently regarded as number one stock in return on equity category among its peers . The ratio of Revenue to Return On Equity for LOral SA is about 164,313,486,005 . 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 LOréal SA's earnings, one of the primary drivers of an investment's value.LOréal Revenue vs. Competition
LOral SA is rated second overall in revenue category among its peers. Market size based on revenue of Household & Personal Products industry is now estimated at about 17.57 Trillion. LOréal SA adds roughly 32.29 Billion in revenue claiming only tiny portion of equities under Household & Personal Products industry.
LOréal Return On Equity vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
LOréal SA |
| = | 32.29 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
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.
LOréal SA |
| = | 0.2 |
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.
LOréal Return On Equity Comparison
LOral SA is currently under evaluation in return on equity category among its peers.
LOréal Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on LOréal SA. 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 LOréal SA 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 LOréal SA's important profitability drivers and their relationship over time.
Use LOréal SA 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 LOréal SA 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 LOréal SA will appreciate offsetting losses from the drop in the long position's value.LOréal SA Pair Trading
LOral SA Pair Trading Analysis
The ability to find closely correlated positions to LOréal SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LOréal SA 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 LOréal SA - 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 LOral SA to buy it.
The correlation of LOréal SA 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 LOréal SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LOréal SA 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 LOréal SA 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 LOréal SA position
In addition to having LOréal SA 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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Additional Tools for LOréal Stock Analysis
When running LOréal SA's price analysis, check to measure LOréal SA's 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 LOréal SA is operating at the current time. Most of LOréal SA's value examination focuses on studying past and present price action to predict the probability of LOréal SA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move LOréal SA's price. Additionally, you may evaluate how the addition of LOréal SA to your portfolios can decrease your overall portfolio volatility.