Nidec Return On Equity vs. Profit Margin
| NJDCYDelisted Stock | USD 13.60 0.07 0.51% |
For Nidec profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nidec to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nidec utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nidec's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nidec over time as well as its relative position and ranking within its peers.
Nidec |
Nidec Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nidec's current stock value. Our valuation model uses many indicators to compare Nidec value to that of its competitors to determine the firm's financial worth. Nidec is regarded fourth in return on equity category among its peers. It also is regarded fourth in profit margin category among its peers fabricating about 0.59 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Nidec is roughly 1.68 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Nidec by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nidec'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.Nidec Profit 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.
Nidec |
| = | 0.11 |
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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Nidec |
| = | 0.06 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Nidec Profit Margin Comparison
Nidec is currently under evaluation in profit margin category among its peers.
Nidec Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nidec, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nidec will eventually generate negative long term returns. The profitability progress is the general direction of Nidec's change in net profit over the period of time. It can combine multiple indicators of Nidec, 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.
Nidec Corporation, together with its subsidiaries, develops, manufactures, and sells motors, electronics and optical components, and other related products in Japan and internationally. The company was incorporated in 1973 and is headquartered in Kyoto, Japan. Nihon Densan operates under Specialty Industrial Machinery classification in the United States and is traded on OTC Exchange. It employs 114371 people.
Nidec Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nidec. 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 Nidec 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 Nidec's important profitability drivers and their relationship over time.
Use Nidec 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 Nidec 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 Nidec will appreciate offsetting losses from the drop in the long position's value.Nidec Pair Trading
Nidec Pair Trading Analysis
The ability to find closely correlated positions to Nidec could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nidec 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 Nidec - 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 Nidec to buy it.
The correlation of Nidec 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 Nidec moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nidec 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 Nidec 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 Nidec position
In addition to having Nidec 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 Rentals Thematic Idea Now
Rentals
Companies providing rental and leasing services to public and business. The Rentals theme has 41 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 Rentals Theme or any other thematic opportunities.
| View All Next | Launch |
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 main economic indicators. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Consideration for investing in Nidec Pink Sheet
If you are still planning to invest in Nidec 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 Nidec's history and understand the potential risks before investing.
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |