Meritage Hospitality EBITDA vs. Net Income
Based on the key profitability measurements obtained from Meritage Hospitality's financial statements, Meritage Hospitality Group may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in April. Profitability indicators assess Meritage Hospitality'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 otc stock could be closely tied with the direction of predictive economic indicators such as signals in price.
Please note, there is a significant difference between Meritage Hospitality's value and its price as these two are different measures arrived at by different means. Investors typically determine if Meritage Hospitality is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Meritage Hospitality'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 Meritage Hospitality profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Meritage Hospitality to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Meritage Hospitality Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Meritage Hospitality's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Meritage Hospitality Group over time as well as its relative position and ranking within its peers.
Meritage |
Meritage Hospitality Net Income vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Meritage Hospitality's current stock value. Our valuation model uses many indicators to compare Meritage Hospitality value to that of its competitors to determine the firm's financial worth. Meritage Hospitality Group is considered to be number one stock in ebitda category among its peers. It also is considered to be number one stock in net income category among its peers making up about 0.37 of Net Income per EBITDA. The ratio of EBITDA to Net Income for Meritage Hospitality Group is roughly 2.71 . 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 Meritage Hospitality's earnings, one of the primary drivers of an investment's value.Meritage Net Income vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Meritage Hospitality |
| = | 47.35 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
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.
Meritage Hospitality |
| = | 17.45 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.
Meritage Net Income Comparison
Meritage Hospitality is currently under evaluation in net income category among its peers.
Meritage Hospitality Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Meritage Hospitality, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Meritage Hospitality will eventually generate negative long term returns. The profitability progress is the general direction of Meritage Hospitality's change in net profit over the period of time. It can combine multiple indicators of Meritage Hospitality, 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.
Meritage Hospitality Group Inc. operates quick-service and casual dining restaurants. Meritage Hospitality Group Inc. was incorporated in 1986 and is headquartered in Grand Rapids, Michigan. Meritage Hosp operates under Restaurants classification in the United States and is traded on OTC Exchange. It employs 330 people.
Meritage Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Meritage Hospitality. 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 Meritage Hospitality 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 Meritage Hospitality's important profitability drivers and their relationship over time.
Use Meritage Hospitality 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 Meritage Hospitality 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 Meritage Hospitality will appreciate offsetting losses from the drop in the long position's value.Meritage Hospitality Pair Trading
Meritage Hospitality Group Pair Trading Analysis
The ability to find closely correlated positions to Helmerich could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Helmerich 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 Helmerich - 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 Helmerich and Payne to buy it.
The correlation of Helmerich 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 Helmerich moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Helmerich and Payne 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 Helmerich 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 Meritage Hospitality position
In addition to having Meritage Hospitality 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 Hedge Favorites Thematic Idea Now
Hedge Favorites
Hedge Funds pool capital from accredited individuals or institutional investors and invest in a variety of assets, often with complex portfolio-construction and risk-management techniques. The Hedge Favorites theme has 33 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 Hedge Favorites Theme or any other thematic opportunities.
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Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any otc stock could be closely tied with the direction of predictive economic indicators such as signals in price. Note that the Meritage Hospitality information on this page should be used as a complementary analysis to other Meritage Hospitality's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Consideration for investing in Meritage OTC Stock
If you are still planning to invest in Meritage Hospitality check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Meritage Hospitality's history and understand the potential risks before investing.
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