Nissin Foods Return On Equity vs. Price To Earning

NFPDFDelisted Stock  USD 24.20  0.00  0.00%   
Based on Nissin Foods' profitability indicators, Nissin Foods Holdings may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Nissin Foods' ability to earn profits and add value for shareholders.
For Nissin Foods profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nissin Foods to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nissin Foods Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nissin Foods's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nissin Foods Holdings over time as well as its relative position and ranking within its peers.
  
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 unemployment.
Please note, there is a significant difference between Nissin Foods' value and its price as these two are different measures arrived at by different means. Investors typically determine if Nissin Foods is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nissin Foods' 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.

Nissin Foods Holdings Price To Earning vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Nissin Foods's current stock value. Our valuation model uses many indicators to compare Nissin Foods value to that of its competitors to determine the firm's financial worth.
Nissin Foods Holdings 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 price to earning category among its peers reporting about  226.83  of Price To Earning per Return On Equity. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Nissin Foods' earnings, one of the primary drivers of an investment's value.

Nissin Price To Earning 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.

Nissin Foods

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0958
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.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Nissin Foods

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
21.73 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Nissin Price To Earning Comparison

Nissin Foods is currently under evaluation in price to earning category among its peers.

Nissin Foods Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Nissin Foods, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nissin Foods will eventually generate negative long term returns. The profitability progress is the general direction of Nissin Foods' change in net profit over the period of time. It can combine multiple indicators of Nissin Foods, 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.
,Ltd., together with its subsidiaries, engages in the manufacture and sale of instant foods in Japan and internationally. The company was incorporated in 1948 and is headquartered in Tokyo, Japan. Nissin Food operates under Packaged Foods classification in the United States and is traded on OTC Exchange. It employs 14633 people.

Nissin Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Nissin Foods. 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 Nissin Foods 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 Nissin Foods' important profitability drivers and their relationship over time.

Use Nissin Foods 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 Nissin Foods 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 Nissin Foods will appreciate offsetting losses from the drop in the long position's value.

Nissin Foods Pair Trading

Nissin Foods Holdings Pair Trading Analysis

The ability to find closely correlated positions to Nissin Foods could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nissin Foods 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 Nissin Foods - 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 Nissin Foods Holdings to buy it.
The correlation of Nissin Foods 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 Nissin Foods moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nissin Foods Holdings 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 Nissin Foods 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Nissin Foods position

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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 unemployment.
You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

Other Consideration for investing in Nissin Pink Sheet

If you are still planning to invest in Nissin Foods Holdings 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 Nissin Foods' history and understand the potential risks before investing.
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