NXP Semiconductors Return On Equity vs. Operating Margin
| N1XP34 Stock | BRL 684.08 15.73 2.35% |
For NXP Semiconductors profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NXP Semiconductors to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NXP Semiconductors NV utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NXP Semiconductors's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NXP Semiconductors NV over time as well as its relative position and ranking within its peers.
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NXP Semiconductors Operating Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NXP Semiconductors's current stock value. Our valuation model uses many indicators to compare NXP Semiconductors value to that of its competitors to determine the firm's financial worth. NXP Semiconductors NV is regarded second in return on equity category among its peers. It also is regarded second in operating margin category among its peers reporting about 0.75 of Operating Margin per Return On Equity. The ratio of Return On Equity to Operating Margin for NXP Semiconductors NV is roughly 1.34 . Comparative valuation analysis is a catch-all model that can be used if you cannot value NXP Semiconductors by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for NXP Semiconductors' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.NXP 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.
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| = | 0.39 |
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.
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| = | 0.29 % |
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.
NXP Operating Margin Comparison
NXP Semiconductors is currently under evaluation in operating margin category among its peers.
NXP Semiconductors Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NXP Semiconductors, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NXP Semiconductors will eventually generate negative long term returns. The profitability progress is the general direction of NXP Semiconductors' change in net profit over the period of time. It can combine multiple indicators of NXP Semiconductors, 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.
NXP Semiconductors N.V. offers various semiconductor products. NXP Semiconductors N.V. was incorporated in 2006 and is headquartered in Eindhoven, the Netherlands. NXP SEMICONDDRN is traded on Sao Paolo Stock Exchange in Brazil.
NXP Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NXP Semiconductors. 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 NXP Semiconductors 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 NXP Semiconductors' important profitability drivers and their relationship over time.
Use NXP Semiconductors 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 NXP Semiconductors 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 NXP Semiconductors will appreciate offsetting losses from the drop in the long position's value.NXP Semiconductors Pair Trading
NXP Semiconductors NV Pair Trading Analysis
The ability to find closely correlated positions to NXP Semiconductors could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NXP Semiconductors 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 NXP Semiconductors - 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 NXP Semiconductors NV to buy it.
The correlation of NXP Semiconductors 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 NXP Semiconductors moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NXP Semiconductors 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 NXP Semiconductors 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 NXP Semiconductors position
In addition to having NXP Semiconductors 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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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Trading theme has 61 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 Trading Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in NXP Stock
When determining whether NXP Semiconductors offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of NXP Semiconductors' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Nxp Semiconductors Nv Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nxp Semiconductors Nv Stock:Check out Correlation Analysis. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
To fully project NXP Semiconductors' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of NXP Semiconductors 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 NXP Semiconductors' income statement, its balance sheet, and the statement of cash flows.