NorAm Drilling Return On Equity vs. Price To Sales
| NORAM Stock | 33.90 0.75 2.16% |
For NorAm Drilling profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NorAm Drilling to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NorAm Drilling AS utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NorAm Drilling's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NorAm Drilling AS over time as well as its relative position and ranking within its peers.
NorAm |
NorAm Drilling AS Price To Sales vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NorAm Drilling's current stock value. Our valuation model uses many indicators to compare NorAm Drilling value to that of its competitors to determine the firm's financial worth. NorAm Drilling AS 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 sales category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value NorAm Drilling by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for NorAm Drilling's 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.NorAm Price To Sales 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.
NorAm Drilling |
| = | -0.36 |
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 Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
NorAm Drilling |
| = | 29.49 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
NorAm Price To Sales Comparison
NorAm Drilling is currently under evaluation in price to sales category among its peers.
NorAm Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NorAm Drilling. 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 NorAm Drilling 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 NorAm Drilling's important profitability drivers and their relationship over time.
Use NorAm Drilling 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 NorAm Drilling 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 NorAm Drilling will appreciate offsetting losses from the drop in the long position's value.NorAm Drilling Pair Trading
NorAm Drilling AS Pair Trading Analysis
The ability to find closely correlated positions to NorAm Drilling could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NorAm Drilling 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 NorAm Drilling - 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 NorAm Drilling AS to buy it.
The correlation of NorAm Drilling 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 NorAm Drilling moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NorAm Drilling AS 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 NorAm Drilling 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 NorAm Drilling position
In addition to having NorAm Drilling 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 Electronic Equipment Thematic Idea Now
Electronic Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Electronic Equipment theme has 61 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 Electronic Equipment Theme or any other thematic opportunities.
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Other Information on Investing in NorAm Stock
To fully project NorAm Drilling's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of NorAm Drilling AS 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 NorAm Drilling's income statement, its balance sheet, and the statement of cash flows.