National Capital Return On Equity vs. Revenue
| NACB Stock | USD 85.00 15.00 21.43% |
For National Capital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of National Capital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well National Capital Bank utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between National Capital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of National Capital Bank over time as well as its relative position and ranking within its peers.
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National Capital Bank Revenue vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining National Capital's current stock value. Our valuation model uses many indicators to compare National Capital value to that of its competitors to determine the firm's financial worth. National Capital Bank is regarded second in return on equity category among its peers. It also is regarded second in revenue category among its peers totaling about 269,493,341 of Revenue per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value National Capital by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for National Capital's Pink Sheet. 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.National Revenue 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.
National Capital |
| = | 0.0907 |
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.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
National Capital |
| = | 24.44 M |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
National Revenue vs Competition
National Capital Bank is regarded second in revenue category among its peers. Market size based on revenue of Financials industry is now estimated at about 223.62 Million. National Capital retains roughly 24.44 Million in revenue claiming about 11% of equities under Financials industry.
National Capital Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in National Capital, profitability is also one of the essential criteria for including it into their portfolios because, without profit, National Capital will eventually generate negative long term returns. The profitability progress is the general direction of National Capital's change in net profit over the period of time. It can combine multiple indicators of National 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.
National Capital Bancorp, Inc. operates as the bank holding for The National Capital Bank of Washington that provides various banking products and services to individuals and businesses in Washington. The company was founded in 1889 and is based in Washington, the District of Columbia. National Capital operates under BanksRegional classification in the United States and is traded on OTC Exchange.
National Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on National 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 National 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 National Capital's important profitability drivers and their relationship over time.
Use National 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 National 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 National Capital will appreciate offsetting losses from the drop in the long position's value.National Capital Pair Trading
National Capital Bank Pair Trading Analysis
The ability to find closely correlated positions to National 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 National 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 National 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 National Capital Bank to buy it.
The correlation of National 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 National Capital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if National Capital Bank 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 National 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 National Capital position
In addition to having National 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?
Run Power Assets Thematic Idea Now
Power Assets
Large capitalization equities showing high long-term performance indicators and above average return expectations based on Macroaxis rating system. The Power Assets theme has 49 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 Power Assets Theme or any other thematic opportunities.
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Other Information on Investing in National Pink Sheet
To fully project National Capital's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of National Capital Bank 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 National Capital's income statement, its balance sheet, and the statement of cash flows.