MaxLinear Return On Equity vs. Operating Margin
| MXL Stock | USD 15.87 0.33 2.12% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (0.11) | Current Value (0.10) | Quarterly Volatility 0.17130704 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.63 | 0.5563 |
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For MaxLinear profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MaxLinear to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MaxLinear utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MaxLinear's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MaxLinear over time as well as its relative position and ranking within its peers.
MaxLinear |
MaxLinear's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Semiconductors & Semiconductor Equipment 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 MaxLinear. If investors know MaxLinear 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 MaxLinear 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 (0.71) | Earnings Share (2.73) | Revenue Per Share 4.749 | Quarterly Revenue Growth (0.40) | Return On Assets (0.10) |
The market value of MaxLinear is measured differently than its book value, which is the value of MaxLinear that is recorded on the company's balance sheet. Investors also form their own opinion of MaxLinear's value that differs from its market value or its book value, called intrinsic value, which is MaxLinear'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 MaxLinear's market value can be influenced by many factors that don't directly affect MaxLinear'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 MaxLinear's value and its price as these two are different measures arrived at by different means. Investors typically determine if MaxLinear is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MaxLinear'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.
MaxLinear Operating Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining MaxLinear's current stock value. Our valuation model uses many indicators to compare MaxLinear value to that of its competitors to determine the firm's financial worth. MaxLinear is regarded third in return on equity category among its peers. It also is regarded third in operating margin category among its peers . At this time, MaxLinear's Return On Equity is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value MaxLinear 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.MaxLinear Operating Margin vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
MaxLinear |
| = | -0.36 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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.
MaxLinear |
| = | (0.48) % |
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.
MaxLinear Operating Margin Comparison
MaxLinear is currently under evaluation in operating margin category among its peers.
MaxLinear Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in MaxLinear, profitability is also one of the essential criteria for including it into their portfolios because, without profit, MaxLinear will eventually generate negative long term returns. The profitability progress is the general direction of MaxLinear's change in net profit over the period of time. It can combine multiple indicators of MaxLinear, 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 | ||
| Accumulated Other Comprehensive Income | -3.8 M | -3.6 M | |
| Operating Income | -38.2 M | -36.3 M | |
| Income Before Tax | -63.8 M | -60.6 M | |
| Total Other Income Expense Net | -25.6 M | -24.3 M | |
| Net Loss | -73.1 M | -69.5 M | |
| Income Tax Expense | 9.3 M | 9.8 M | |
| Net Income Applicable To Common Shares | 143.8 M | 151 M | |
| Net Loss | -3.6 M | -3.7 M | |
| Non Operating Income Net Other | 3.4 M | 3.5 M | |
| Interest Income | 4.3 M | 4.6 M | |
| Net Interest Income | -5.7 M | -6 M | |
| Change To Netincome | 120.1 M | 126.1 M | |
| Net Loss | (0.91) | (0.86) | |
| Income Quality | (0.59) | (0.62) | |
| Net Income Per E B T | 1.15 | 1.11 |
MaxLinear Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on MaxLinear. 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 MaxLinear 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 MaxLinear's important profitability drivers and their relationship over time.
Use MaxLinear 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 MaxLinear 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 MaxLinear will appreciate offsetting losses from the drop in the long position's value.MaxLinear Pair Trading
MaxLinear Pair Trading Analysis
The ability to find closely correlated positions to MaxLinear could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace MaxLinear 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 MaxLinear - 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 MaxLinear to buy it.
The correlation of MaxLinear 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 MaxLinear moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if MaxLinear 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 MaxLinear 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 MaxLinear position
In addition to having MaxLinear 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 Treasury ETFs Thematic Idea Now
Treasury ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Treasury ETFs theme has 114 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 Treasury ETFs Theme or any other thematic opportunities.
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Check out Correlation Analysis. For more information on how to buy MaxLinear Stock please use our How to buy in MaxLinear Stock guide.You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
To fully project MaxLinear's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of MaxLinear 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 MaxLinear's income statement, its balance sheet, and the statement of cash flows.