Netwealth Profit Margin vs. Current Valuation

NWL Stock   30.78  0.44  1.45%   
Considering the key profitability indicators obtained from Netwealth's historical financial statements, Netwealth Group may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Netwealth's ability to earn profits and add value for shareholders.
For Netwealth profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Netwealth to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Netwealth Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Netwealth's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Netwealth Group over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between Netwealth's value and its price as these two are different measures arrived at by different means. Investors typically determine if Netwealth is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Netwealth'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.

Netwealth Group Current Valuation vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Netwealth's current stock value. Our valuation model uses many indicators to compare Netwealth value to that of its competitors to determine the firm's financial worth.
Netwealth Group is considered to be number one stock in profit margin category among its peers. It also is rated top company in current valuation category among its peers reporting about  22,325,645,560  of Current Valuation per Profit Margin. 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 Netwealth's earnings, one of the primary drivers of an investment's value.

Netwealth Current Valuation vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Netwealth

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.33 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
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.

Netwealth

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
7.29 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.

Netwealth Current Valuation vs Competition

Netwealth Group is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is now estimated at about 11.52 Billion. Netwealth totals roughly 7.29 Billion in current valuation claiming about 63% of equities under Financials industry.

Netwealth Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Netwealth, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Netwealth will eventually generate negative long term returns. The profitability progress is the general direction of Netwealth's change in net profit over the period of time. It can combine multiple indicators of Netwealth, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income9.6 M10.1 M
Operating Income134.8 M141.5 M
Net Income From Continuing Ops83.4 M87.5 M
Income Before Tax120.4 M126.5 M
Total Other Income Expense Net-14.3 M-13.6 M
Net Income Applicable To Common Shares77.2 M81.1 M
Net Income83.4 M87.5 M
Income Tax Expense37.1 M38.9 M
Interest Income5.6 M5.9 M
Net Interest Income5.6 M5.9 M
Change To Netincome6.9 M7.2 M

Netwealth Profitability Driver Comparison

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

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

Netwealth Pair Trading

Netwealth Group Pair Trading Analysis

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

In addition to having Netwealth 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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Run Materials ETFs Thematic Idea Now

Materials ETFs
Materials ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Materials ETFs theme has 51 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 Materials ETFs Theme or any other thematic opportunities.
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Additional Tools for Netwealth Stock Analysis

When running Netwealth's price analysis, check to measure Netwealth'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 Netwealth is operating at the current time. Most of Netwealth's value examination focuses on studying past and present price action to predict the probability of Netwealth's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Netwealth's price. Additionally, you may evaluate how the addition of Netwealth to your portfolios can decrease your overall portfolio volatility.