Nexcom AS Return On Equity vs. Debt To Equity
| NEXCOM Stock | DKK 3.98 0.48 13.71% |
For Nexcom AS profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nexcom AS to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nexcom AS utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nexcom AS's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nexcom AS over time as well as its relative position and ranking within its peers.
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Nexcom AS Debt To Equity vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nexcom AS's current stock value. Our valuation model uses many indicators to compare Nexcom AS value to that of its competitors to determine the firm's financial worth. Nexcom AS is considered to be number one stock in return on equity category among its peers. It also is considered to be number one stock in debt to equity category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Nexcom AS by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nexcom AS's 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.Nexcom Debt To Equity 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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| = | -0.7 |
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.
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
Nexcom AS |
| = | 0.41 % |
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
Nexcom Debt To Equity Comparison
Nexcom AS is currently under evaluation in debt to equity category among its peers.
Nexcom AS Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nexcom AS, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nexcom AS will eventually generate negative long term returns. The profitability progress is the general direction of Nexcom AS's change in net profit over the period of time. It can combine multiple indicators of Nexcom AS, 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.
Nexcom AS, a software as a service company, engages in the development of software solutions for the automation of customer services in Denmark. The company was founded in 1997 and is based in Karlslunde, Denmark. Nexcom AS operates under SoftwareApplication classification in Denmark and is traded on Copenhagen Stock Exchange. It employs 16 people.
Nexcom Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nexcom AS. 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 Nexcom AS 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 Nexcom AS's important profitability drivers and their relationship over time.
Use Nexcom AS 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 Nexcom AS 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 Nexcom AS will appreciate offsetting losses from the drop in the long position's value.Nexcom AS Pair Trading
Nexcom AS Pair Trading Analysis
The ability to find closely correlated positions to Nexcom AS could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nexcom AS 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 Nexcom AS - 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 Nexcom AS to buy it.
The correlation of Nexcom AS 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 Nexcom AS moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nexcom AS 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 Nexcom AS 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 Nexcom AS position
In addition to having Nexcom AS 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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Companies in sporting activities arena as well as manufacturers of sporting goods and sport retailers. The Sports theme has 25 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 Sports Theme or any other thematic opportunities.
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Other Information on Investing in Nexcom Stock
To fully project Nexcom AS's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nexcom AS 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 Nexcom AS's income statement, its balance sheet, and the statement of cash flows.