NEC Networks Operating Margin vs. Current Valuation
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 Current Valuation vs. Operating Margin 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 operating margin category among its peers. It is regarded fourth in current valuation category among its peers . 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 Current Valuation 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.
NEC Networks |
| = | 8.04 % |
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.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
NEC Networks |
| = | (61.77 B) |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
NEC Current Valuation vs Competition
NEC Networks System is regarded fourth in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology Services industry is now estimated at about (38.97 Billion). NEC Networks has negative current valuation of (61.77 Billion) having no influence on the industry.
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 Amphenol could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Amphenol 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 Amphenol - 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 Amphenol to buy it.
The correlation of Amphenol 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 Amphenol moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Amphenol 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 Amphenol 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 Treasury ETFs Thematic Idea Now
Treasury ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Treasury ETFs theme has 124 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 Treasury ETFs 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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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