| MHID Stock | | | USD 36.40 0.20 0.55% |
Based on the key profitability measurements obtained from Mahindra Mahindra's financial statements, Mahindra Mahindra's profitability may be sliding down. It has an above-average likelihood of reporting lower numbers next quarter. Profitability indicators assess Mahindra Mahindra's ability to earn profits and add value for shareholders. At this time, Mahindra Mahindra's
Price To Sales Ratio is quite stable compared to the past year.
EV To Sales is expected to rise to 2.41 this year, although the value of
Sales General And Administrative To Revenue will most likely fall to 0.01. At this time, Mahindra Mahindra's
Net Income Applicable To Common Shares is quite stable compared to the past year.
Net Income Per Share is expected to rise to 106.20 this year, although the value of
Interest Income will most likely fall to about 5.9
B.
For Mahindra Mahindra profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Mahindra Mahindra to generate income relative to revenue, assets, operating costs, and current equity. These
fundamental indicators attest to how well Mahindra Mahindra Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Mahindra Mahindra's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Mahindra Mahindra Limited over time as well as its relative position and ranking within its peers.
Check out
Correlation Analysis.
Please note, there is a significant difference between Mahindra Mahindra's value and its price as these two are different measures arrived at by different means. Investors typically determine if Mahindra Mahindra is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mahindra Mahindra'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.
Mahindra Mahindra Operating Margin vs. Price To Earnings To Growth Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Mahindra Mahindra's current stock value. Our valuation model uses many indicators to compare Mahindra Mahindra value to that of its competitors to determine the firm's financial worth.
Mahindra Mahindra Limited is considered to be number one stock in price to earnings to growth category among its peers. It also is considered to be number one stock in operating margin category among its peers reporting about
0.09 of Operating Margin per Price To Earnings To Growth. The ratio of Price To Earnings To Growth to Operating Margin for Mahindra Mahindra Limited is roughly
10.66 . At this time, Mahindra Mahindra's
Operating Profit Margin is quite stable compared to the past year. 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 Mahindra Mahindra's earnings, one of the primary drivers of an investment's value.
Mahindra Operating Margin vs. Price To Earnings To Growth
PEG Ratio indicates the potential value of an equity instrument and is calculated by dividing Price to Earnings (P/E) ratio into earnings growth rate. Most analysts and investors prefer this measure to a Price to Earnings (P/E) ratio because it incorporates the future growth of a firm. The low PEG ratio usually implies that an equity instrument is undervalued; whereas PEG of 1 may indicate that an equity is reasonably priced under given expectations of future growth.
Mahindra Mahindra | PEG Ratio | = | PE RatioEPS Growth |
| = | 1.56 X |
Generally speaking, PEG ratio is a 'quick and dirty' way to measure how the current price of a firm's stock relates to its earnings and growth rate. The main benefit of using PEG ratio is that investors can compare the relative valuations of companies within different industries without analyzing their P/E ratios.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Mahindra Mahindra | Operating Margin | = | Operating IncomeRevenue | X | 100 |
| = | 0.15 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Mahindra Operating Margin Comparison
Mahindra Mahindra is currently under evaluation in operating margin category among its peers.
Mahindra Mahindra Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Mahindra Mahindra, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Mahindra Mahindra will eventually generate negative long term returns. The profitability progress is the general direction of Mahindra Mahindra's change in net profit over the period of time. It can combine
multiple indicators of Mahindra Mahindra, 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.
Mahindra Profitability Driver Comparison
Profitability drivers are factors that can directly affect your
investment outlook on Mahindra Mahindra. 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 Mahindra Mahindra 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 Mahindra Mahindra's important profitability drivers and their relationship over time.
Use Mahindra Mahindra 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 Mahindra Mahindra 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 Mahindra Mahindra will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Mahindra Mahindra could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Mahindra Mahindra 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 Mahindra Mahindra - 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 Mahindra Mahindra Limited to buy it.
The correlation of Mahindra Mahindra 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 Mahindra Mahindra moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Mahindra Mahindra 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 Mahindra Mahindra 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 Mahindra Mahindra position
In addition to having Mahindra Mahindra 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.
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Other Information on Investing in Mahindra Stock
To fully project Mahindra Mahindra's
future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the
financial position of Mahindra Mahindra 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 Mahindra Mahindra's income statement, its balance sheet, and the statement of cash flows.
Potential Mahindra Mahindra investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Mahindra Mahindra investors may work on each financial statement separately, they are all related. The changes in Mahindra Mahindra's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Mahindra Mahindra's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
