Monroe Capital Price To Earning vs. Operating Margin
| MRCC Stock | USD 8.48 0.01 0.12% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.36 | 0.3757 |
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For Monroe Capital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Monroe Capital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Monroe Capital Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Monroe Capital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Monroe Capital Corp over time as well as its relative position and ranking within its peers.
Monroe |
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Monroe Capital. If investors know Monroe will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Monroe Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.05) | Earnings Share 0.61 | Revenue Per Share 2.86 | Quarterly Revenue Growth (0.04) | Return On Assets 0.0545 |
The market value of Monroe Capital Corp is measured differently than its book value, which is the value of Monroe that is recorded on the company's balance sheet. Investors also form their own opinion of Monroe Capital's value that differs from its market value or its book value, called intrinsic value, which is Monroe Capital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Monroe Capital's market value can be influenced by many factors that don't directly affect Monroe Capital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Monroe Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Monroe Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Monroe Capital'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.
Monroe Capital Corp Operating Margin vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Monroe Capital's current stock value. Our valuation model uses many indicators to compare Monroe Capital value to that of its competitors to determine the firm's financial worth. Monroe Capital Corp is considered to be number one stock in price to earning category among its peers. It also is considered to be number one stock in operating margin category among its peers reporting about 0.01 of Operating Margin per Price To Earning. The ratio of Price To Earning to Operating Margin for Monroe Capital Corp is roughly 139.16 . At present, Monroe Capital's Operating Profit Margin is projected to increase slightly based on the last few years of reporting. 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 Monroe Capital's earnings, one of the primary drivers of an investment's value.Monroe Operating Margin vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Monroe Capital |
| = | 111.08 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.
Monroe Capital |
| = | 0.80 % |
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.
Monroe Operating Margin Comparison
Monroe Capital is currently under evaluation in operating margin category among its peers.
Monroe Capital Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Monroe Capital, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Monroe Capital will eventually generate negative long term returns. The profitability progress is the general direction of Monroe Capital's change in net profit over the period of time. It can combine multiple indicators of Monroe Capital, 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.
| Last Reported | Projected for Next Year | ||
| Operating Income | 24.2 M | 19.7 M | |
| Income Before Tax | 1.2 M | 1.1 M | |
| Total Other Income Expense Net | -23 M | -21.8 M | |
| Net Loss | -3.2 M | -3 M | |
| Net Income | 371 K | 352.4 K | |
| Net Income From Continuing Ops | 3.3 M | 3.1 M | |
| Income Tax Expense | 806 K | 846.3 K | |
| Interest Income | 59.3 M | 50.6 M | |
| Net Interest Income | 38.5 M | 30.5 M | |
| Non Operating Income Net Other | -59.4 K | -62.4 K | |
| Change To Netincome | 24 M | 25.2 M | |
| Net Income Per Share | 0.02 | 0.02 | |
| Income Quality | 139.44 | 146.41 | |
| Net Income Per E B T | 0.32 | 0.30 |
Monroe Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Monroe Capital. 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 Monroe Capital 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 Monroe Capital's important profitability drivers and their relationship over time.
Use Monroe Capital 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 Monroe Capital 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 Monroe Capital will appreciate offsetting losses from the drop in the long position's value.Monroe Capital Pair Trading
Monroe Capital Corp Pair Trading Analysis
The ability to find closely correlated positions to Monroe Capital could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Monroe Capital 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 Monroe Capital - 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 Monroe Capital Corp to buy it.
The correlation of Monroe Capital 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 Monroe Capital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Monroe Capital Corp 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 Monroe Capital 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 Monroe Capital position
In addition to having Monroe Capital 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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Check out Correlation Analysis. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
To fully project Monroe Capital's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Monroe Capital Corp 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 Monroe Capital's income statement, its balance sheet, and the statement of cash flows.