NEC Networks Net Income vs. Return On Equity
Please note, there is a significant difference between NEC Networks' value and its price as these two are different measures arrived at by different means. Investors typically determine if NEC Networks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NEC Networks' 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.NEC Networks System Return On Equity vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NEC Networks's current stock value. Our valuation model uses many indicators to compare NEC Networks value to that of its competitors to determine the firm's financial worth. NEC Networks System is considered to be number one stock in net income category among its peers. It also is considered to be number one stock in return on equity category among its peers . The ratio of Net Income to Return On Equity for NEC Networks System is about 1,165,487,977 . 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 NEC Networks' earnings, one of the primary drivers of an investment's value.NEC Return On Equity vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
NEC Networks |
| = | 16.48 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
NEC Networks |
| = | 14.14 |
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.
NEC Return On Equity Comparison
NEC Networks is currently under evaluation in return on equity category among its peers.
NEC Networks Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NEC Networks, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NEC Networks will eventually generate negative long term returns. The profitability progress is the general direction of NEC Networks' change in net profit over the period of time. It can combine multiple indicators of NEC Networks, 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.
NEC Networks System Integration Corporation provides planning, consulting, system design and integration, construction, and installation services in Japan and internationally. NEC Networks System Integration Corporation was founded in 1953 and is headquartered in Tokyo, Japan. Nec Networks operates under Information Technology Services classification in the United States and is traded on OTC Exchange. It employs 7537 people.
NEC Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NEC Networks. 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 NEC Networks 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 NEC Networks' important profitability drivers and their relationship over time.
NEC Networks Earnings per Share Projection vs Actual
Use NEC Networks 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 NEC Networks 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 NEC Networks will appreciate offsetting losses from the drop in the long position's value.NEC Networks Pair Trading
NEC Networks System Pair Trading Analysis
The ability to find closely correlated positions to Microsoft could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microsoft 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 Microsoft - 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 Microsoft to buy it.
The correlation of Microsoft 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 Microsoft moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microsoft 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 Microsoft 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 NEC Networks position
In addition to having NEC Networks 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 Hybrid Mix Funds Thematic Idea Now
Hybrid Mix Funds
Funds or Etfs that are made of portfolios of stocks, bonds, or cash instruments with different maturity horizons and characteristics. The Hybrid Mix Funds theme has 45 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 Hybrid Mix Funds Theme or any other thematic opportunities.
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Consideration for investing in NEC Pink Sheet
If you are still planning to invest in NEC Networks System 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 NEC Networks' history and understand the potential risks before investing.
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