Marel Hf Price To Book vs. Return On Equity
Considering the key profitability indicators obtained from Marel Hf's historical financial statements, Marel hf may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Marel Hf's ability to earn profits and add value for shareholders.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
Please note, there is a significant difference between Marel Hf's value and its price as these two are different measures arrived at by different means. Investors typically determine if Marel Hf is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Marel Hf'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.
For Marel Hf profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Marel Hf to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Marel hf utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Marel Hf's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Marel hf over time as well as its relative position and ranking within its peers.
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Marel hf Return On Equity vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Marel Hf's current stock value. Our valuation model uses many indicators to compare Marel Hf value to that of its competitors to determine the firm's financial worth. Marel hf is considered to be number one stock in price to book category among its peers. It also is considered to be number one stock in return on equity category among its peers reporting about 0.03 of Return On Equity per Price To Book. The ratio of Price To Book to Return On Equity for Marel hf is roughly 35.74 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Marel Hf by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Marel Hf'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.Marel 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.
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| = | 2.44 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.
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| = | 0.0682 |
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.
Marel Return On Equity Comparison
Marel Hf is currently under evaluation in return on equity category among its peers.
Marel Hf Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Marel Hf, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Marel Hf will eventually generate negative long term returns. The profitability progress is the general direction of Marel Hf's change in net profit over the period of time. It can combine multiple indicators of Marel Hf, 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.
Marel hf. develops, manufactures, sells, and distributes equipment, systems, and services for poultry, fish, and meat industries. The company was founded in 1977 and is based in Garabr, Iceland. MAREL operates under Diversified Industrials classification in Netherlands and is traded on Amsterdam Stock Exchange. It employs 6000 people.
Marel Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Marel Hf. 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 Marel Hf 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 Marel Hf's important profitability drivers and their relationship over time.
Use Marel Hf 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 Marel Hf 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 Marel Hf will appreciate offsetting losses from the drop in the long position's value.Marel Hf Pair Trading
Marel hf Pair Trading Analysis
The ability to find closely correlated positions to Marel Hf could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Marel Hf 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 Marel Hf - 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 Marel hf to buy it.
The correlation of Marel Hf 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 Marel Hf moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Marel hf 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 Marel Hf 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 Marel Hf position
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Other Information on Investing in Marel Stock
To fully project Marel Hf's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Marel hf 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 Marel Hf's income statement, its balance sheet, and the statement of cash flows.