Methode Electronics Net Income vs. Cash Per Share
| ME5A Stock | EUR 10.00 0.30 2.91% |
For Methode Electronics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Methode Electronics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Methode Electronics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Methode Electronics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Methode Electronics over time as well as its relative position and ranking within its peers.
Methode |
Methode Electronics Cash Per Share vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Methode Electronics's current stock value. Our valuation model uses many indicators to compare Methode Electronics value to that of its competitors to determine the firm's financial worth. Methode Electronics is considered to be number one stock in net income category among its peers. It also is considered to be number one stock in cash per share category among its peers . The ratio of Net Income to Cash Per Share for Methode Electronics is about 45,625,000 . 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 Methode Electronics' earnings, one of the primary drivers of an investment's value.Methode Cash Per Share vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Methode Electronics |
| = | 102.2 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.
Methode Electronics |
| = | 2.24 X |
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.
Methode Cash Per Share Comparison
Methode Electronics is currently under evaluation in cash per share category among its peers.
Methode Electronics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Methode Electronics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Methode Electronics will eventually generate negative long term returns. The profitability progress is the general direction of Methode Electronics' change in net profit over the period of time. It can combine multiple indicators of Methode Electronics, 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.
Methode Electronics, Inc. designs, manufactures, and markets component and subsystem devices worldwide. The company was founded in 1946 and is headquartered in Chicago, Illinois. METHODE ELECTR operates under Electronic Components classification in Germany and is traded on Frankfurt Stock Exchange. It employs 6187 people.
Methode Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Methode Electronics. 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 Methode Electronics 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 Methode Electronics' important profitability drivers and their relationship over time.
Use Methode Electronics 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 Methode Electronics 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 Methode Electronics will appreciate offsetting losses from the drop in the long position's value.Methode Electronics Pair Trading
Methode Electronics Pair Trading Analysis
The ability to find closely correlated positions to Methode Electronics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Methode Electronics 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 Methode Electronics - 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 Methode Electronics to buy it.
The correlation of Methode Electronics 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 Methode Electronics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Methode Electronics 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 Methode Electronics 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 Methode Electronics position
In addition to having Methode Electronics 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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Rentals
Companies providing rental and leasing services to public and business. The Rentals theme has 38 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Rentals Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Methode Stock
When determining whether Methode Electronics offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Methode Electronics' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Methode Electronics Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Methode Electronics Stock:Check out Correlation Analysis. For more detail on how to invest in Methode Stock please use our How to Invest in Methode Electronics guide.You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
To fully project Methode Electronics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Methode Electronics 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 Methode Electronics' income statement, its balance sheet, and the statement of cash flows.