Mechel OAO Return On Asset vs. Operating Margin
Considering Mechel OAO's profitability and operating efficiency indicators, Mechel OAO may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess Mechel OAO'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 company could be closely tied with the direction of predictive economic indicators such as signals in estimate.
For Mechel OAO profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Mechel OAO to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Mechel OAO utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Mechel OAO's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Mechel OAO over time as well as its relative position and ranking within its peers.
Mechel |
Mechel OAO Operating Margin vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Mechel OAO's current stock value. Our valuation model uses many indicators to compare Mechel OAO value to that of its competitors to determine the firm's financial worth. Mechel OAO is considered to be number one stock in return on asset category among its peers. It also is considered to be number one stock in operating margin category among its peers reporting about 0.86 of Operating Margin per Return On Asset. The ratio of Return On Asset to Operating Margin for Mechel OAO is roughly 1.16 . Comparative valuation analysis is a catch-all technique that is used if you cannot value Mechel OAO by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Mechel Operating Margin vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Mechel OAO |
| = | 0.31 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
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.
Mechel OAO |
| = | 0.26 % |
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.
Mechel Operating Margin Comparison
Mechel OAO is currently under evaluation in operating margin category among its peers.
Mechel OAO Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Mechel OAO, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Mechel OAO will eventually generate negative long term returns. The profitability progress is the general direction of Mechel OAO's change in net profit over the period of time. It can combine multiple indicators of Mechel OAO, 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.
Mechel PAO, together with its subsidiaries, engages in mining, steel, and power businesses in Russia, Asia, Europe, the Commonwealth of Independent States, and internationally. Mechel PAO was incorporated in 2003 and is headquartered in Moscow, Russia. Mechel PAO is traded on NYQ Exchange in the United States.
Mechel Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Mechel OAO. 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 Mechel OAO 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 Mechel OAO's important profitability drivers and their relationship over time.
Use Mechel OAO 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 Mechel OAO 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 Mechel OAO will appreciate offsetting losses from the drop in the long position's value.Mechel OAO Pair Trading
Mechel OAO Pair Trading Analysis
The ability to find closely correlated positions to Mechel OAO could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Mechel OAO 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 Mechel OAO - 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 Mechel OAO to buy it.
The correlation of Mechel OAO 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 Mechel OAO moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Mechel OAO 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 Mechel OAO 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 Mechel OAO position
In addition to having Mechel OAO 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 Investor Favorites Thematic Idea Now
Investor Favorites
Macroaxis most traded equities with largest long positions over the last 2 years. The Investor Favorites theme has 21 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 Investor 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 company could be closely tied with the direction of predictive economic indicators such as signals in estimate. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Consideration for investing in Mechel Stock
If you are still planning to invest in Mechel OAO 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 Mechel OAO's history and understand the potential risks before investing.
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