Nippon Telegraph Return On Equity vs. Operating Margin

NTTYYDelisted Stock  USD 29.51  0.38  1.30%   
Considering the key profitability indicators obtained from Nippon Telegraph's historical financial statements, Nippon Telegraph and may not be well positioned to generate adequate gross income at this time. It has a very high risk of underperforming in December. Profitability indicators assess Nippon Telegraph's ability to earn profits and add value for shareholders.
For Nippon Telegraph profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nippon Telegraph to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nippon Telegraph and utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nippon Telegraph's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nippon Telegraph and over time as well as its relative position and ranking within its peers.
  
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 manufacturing.
Please note, there is a significant difference between Nippon Telegraph's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nippon Telegraph is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nippon Telegraph'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.

Nippon Telegraph Operating Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Nippon Telegraph's current stock value. Our valuation model uses many indicators to compare Nippon Telegraph value to that of its competitors to determine the firm's financial worth.
Nippon Telegraph and is rated below average in return on equity category among its peers. It is rated below average in operating margin category among its peers reporting about  0.98  of Operating Margin per Return On Equity. The ratio of Return On Equity to Operating Margin for Nippon Telegraph and is roughly  1.02 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Nippon Telegraph by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nippon Telegraph's Pink Sheet. 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.

Nippon Operating Margin 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.

Nippon Telegraph

Return On Equity

 = 

Net Income

Total Equity

 = 
0.14
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.
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.

Nippon Telegraph

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.14 %
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.

Nippon Operating Margin Comparison

Nippon Telegraph is currently under evaluation in operating margin category among its peers.

Nippon Telegraph Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Nippon Telegraph, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nippon Telegraph will eventually generate negative long term returns. The profitability progress is the general direction of Nippon Telegraph's change in net profit over the period of time. It can combine multiple indicators of Nippon Telegraph, 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.
Nippon Telegraph and Telephone Corporation provides fixed voice-related, mobile voice-related, IPpacket communications, and system integration services in Japan and internationally. The company was founded in 1952 and is headquartered in Tokyo, Japan. Nippon Telegraph operates under Telecom Services classification in the United States and is traded on OTC Exchange. It employs 333840 people.

Nippon Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Nippon Telegraph. 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 Nippon Telegraph 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 Nippon Telegraph's important profitability drivers and their relationship over time.

Use Nippon Telegraph 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 Nippon Telegraph 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 Nippon Telegraph will appreciate offsetting losses from the drop in the long position's value.

Nippon Telegraph Pair Trading

Nippon Telegraph and Pair Trading Analysis

The ability to find closely correlated positions to Nippon Telegraph could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nippon Telegraph 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 Nippon Telegraph - 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 Nippon Telegraph and to buy it.
The correlation of Nippon Telegraph 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 Nippon Telegraph moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nippon Telegraph 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 Nippon Telegraph 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Nippon Telegraph position

In addition to having Nippon Telegraph 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.

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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 manufacturing.
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 Nippon Pink Sheet

If you are still planning to invest in Nippon Telegraph 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 Nippon Telegraph's history and understand the potential risks before investing.
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