Nomura Holdings Operating Margin vs. Beta
| NMRH34 Stock | BRL 36.16 0.79 2.23% |
For Nomura Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nomura Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nomura Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nomura Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nomura Holdings over time as well as its relative position and ranking within its peers.
Nomura |
Nomura Holdings Beta vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nomura Holdings's current stock value. Our valuation model uses many indicators to compare Nomura Holdings value to that of its competitors to determine the firm's financial worth. Nomura Holdings is considered to be number one stock in operating margin category among its peers. It also is considered to be number one stock in beta category among its peers totaling about 4.45 of Beta per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Nomura Holdings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nomura Holdings' 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.Nomura Beta vs. Operating Margin
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.
Nomura Holdings |
| = | 0.17 % |
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.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Nomura Holdings |
| = | 0.77 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Nomura Beta Comparison
Nomura Holdings is currently under evaluation in beta category among its peers.
Beta Analysis
As returns on the market increase, Nomura Holdings' returns are expected to increase less than the market. However, during the bear market, the loss of holding Nomura Holdings is expected to be smaller as well.
Nomura Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nomura Holdings. 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 Nomura Holdings 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 Nomura Holdings' important profitability drivers and their relationship over time.
Use Nomura Holdings 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 Nomura Holdings 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 Nomura Holdings will appreciate offsetting losses from the drop in the long position's value.Nomura Holdings Pair Trading
Nomura Holdings Pair Trading Analysis
The ability to find closely correlated positions to Nomura Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nomura Holdings 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 Nomura Holdings - 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 Nomura Holdings to buy it.
The correlation of Nomura Holdings 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 Nomura Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nomura 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 Nomura Holdings 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 Nomura Holdings position
In addition to having Nomura Holdings 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 Candy and Soda Thematic Idea Now
Candy and Soda
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Candy and Soda theme has 13 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 Candy and Soda Theme or any other thematic opportunities.
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Other Information on Investing in Nomura Stock
To fully project Nomura Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nomura Holdings 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 Nomura Holdings' income statement, its balance sheet, and the statement of cash flows.