METHODE ELECTRONICS Net Income vs. Z Score
| ME5A Stock | EUR 10.00 0.50 4.76% |
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 Z Score 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 rated below average in net income category among its peers. It is regarded fifth in z score category among its peers . The ratio of Net Income to Z Score for METHODE ELECTRONICS is about 24,333,333 . 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's earnings, one of the primary drivers of an investment's value.METHODE Z Score 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.
Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
METHODE ELECTRONICS |
| = | 4.2 |
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
METHODE Z Score Comparison
METHODE ELECTRONICS is currently under evaluation in z score category among its peers.
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's 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?
Run Real Estate Thematic Idea Now
Real Estate
Publicly traded companies that are involved in real estate development, property maintenance and management of real estate investment trusts (REIT) funds. The Real Estate theme has 44 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 Real Estate Theme or any other thematic opportunities.
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Additional Tools for METHODE Stock Analysis
When running METHODE ELECTRONICS's price analysis, check to measure METHODE ELECTRONICS'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 METHODE ELECTRONICS is operating at the current time. Most of METHODE ELECTRONICS's value examination focuses on studying past and present price action to predict the probability of METHODE ELECTRONICS's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move METHODE ELECTRONICS's price. Additionally, you may evaluate how the addition of METHODE ELECTRONICS to your portfolios can decrease your overall portfolio volatility.