NET Power Profitability Analysis
| NPWR Stock | 12.99 0.54 4.34% |
Net Loss | First Reported 2010-12-31 | Previous Quarter -77.2 M | Current Value -73.4 M | Quarterly Volatility 19.6 M |
For NET Power profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NET Power to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NET Power utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NET Power's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NET Power over time as well as its relative position and ranking within its peers.
NET |
Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NET Power. If investors know NET will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NET Power listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.33) | Revenue Per Share 0.003 | Quarterly Revenue Growth 0.904 | Return On Assets (0.04) | Return On Equity (0.04) |
The market value of NET Power is measured differently than its book value, which is the value of NET that is recorded on the company's balance sheet. Investors also form their own opinion of NET Power's value that differs from its market value or its book value, called intrinsic value, which is NET Power's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NET Power's market value can be influenced by many factors that don't directly affect NET Power's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NET Power's value and its price as these two are different measures arrived at by different means. Investors typically determine if NET Power is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NET Power's 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.
NET Power Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NET Power's current stock value. Our valuation model uses many indicators to compare NET Power value to that of its competitors to determine the firm's financial worth. NET Power 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 return on asset category among its peers . At this time, NET Power's Return On Equity is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value NET Power by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.NET Return On Asset 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.
NET Power |
| = | -0.0393 |
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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
NET Power |
| = | -0.0374 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
NET Return On Asset Comparison
NET Power is currently under evaluation in return on asset category among its peers.
NET Power Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NET Power, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NET Power will eventually generate negative long term returns. The profitability progress is the general direction of NET Power's change in net profit over the period of time. It can combine multiple indicators of NET Power, 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.
| Last Reported | Projected for Next Year | ||
| Operating Income | -132 M | -125.4 M | |
| Income Before Tax | -181.7 M | -172.6 M | |
| Total Other Income Expense Net | -49.7 M | -47.3 M | |
| Net Loss | -49.3 M | -51.8 M | |
| Net Loss | -77.2 M | -73.4 M | |
| Income Tax Expense | -5.7 M | -5.4 M | |
| Net Interest Income | 4.4 M | 3.9 M | |
| Interest Income | 4.4 M | 3.9 M | |
| Net Income From Continuing Ops | 3.8 M | 3.4 M | |
| Change To Netincome | 31 M | 32.5 M | |
| Net Loss | (1.87) | (1.97) | |
| Income Quality | 0.63 | 0.34 | |
| Net Income Per E B T | 0.43 | 0.40 |
NET Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NET Power. 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 NET Power 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 NET Power's important profitability drivers and their relationship over time.
NET Power Profitability Trends
NET Power profitability trend refers to the progression of profit or loss within a business. An upward trend means that NET Power's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is NET Power's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
NET Power Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between NET Power different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards NET Power in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down NET Power's future profitability.
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Use NET Power 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 NET Power 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 NET Power will appreciate offsetting losses from the drop in the long position's value.NET Power Pair Trading
NET Power Pair Trading Analysis
The ability to find closely correlated positions to NET Power could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NET Power 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 NET Power - 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 NET Power to buy it.
The correlation of NET Power 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 NET Power moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NET Power 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 NET Power 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 NET Power position
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Additional Tools for NET Stock Analysis
When running NET Power's price analysis, check to measure NET Power's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy NET Power is operating at the current time. Most of NET Power's value examination focuses on studying past and present price action to predict the probability of NET Power's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NET Power's price. Additionally, you may evaluate how the addition of NET Power to your portfolios can decrease your overall portfolio volatility.