O2Micro International Profitability Analysis
Please note, there is a significant difference between O2Micro International's value and its price as these two are different measures arrived at by different means. Investors typically determine if O2Micro International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, O2Micro International'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.O2Micro International Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining O2Micro International's current stock value. Our valuation model uses many indicators to compare O2Micro International value to that of its competitors to determine the firm's financial worth. O2Micro International Limited is regarded fifth in return on equity category among its peers. It also is regarded fifth in return on asset category among its peers reporting about 0.40 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for O2Micro International Limited is roughly 2.50 . Comparative valuation analysis is a catch-all technique that is used if you cannot value O2Micro International 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.O2Micro 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.
O2Micro International |
| = | 0.0307 |
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.
O2Micro International |
| = | 0.0123 |
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.
O2Micro Return On Asset Comparison
O2Micro International is currently under evaluation in return on asset category among its peers.
O2Micro International Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in O2Micro International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, O2Micro International will eventually generate negative long term returns. The profitability progress is the general direction of O2Micro International's change in net profit over the period of time. It can combine multiple indicators of O2Micro International, 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.
O2Micro International Limited, together with its subsidiaries, designs, develops, and markets integrated circuits and solutions for power management components and systems in China, Singapore, Taiwan, Malaysia, Korea, the Philippines, Japan, the United States, and internationally. The company was incorporated in 1995 and is headquartered in George Town, the Cayman Islands. O2Micro Intl is traded on NASDAQ Exchange in the United States.
O2Micro Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on O2Micro International. 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 O2Micro International 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 O2Micro International's important profitability drivers and their relationship over time.
O2Micro International Earnings per Share Projection vs Actual
Use O2Micro International 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 O2Micro International 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 O2Micro International will appreciate offsetting losses from the drop in the long position's value.O2Micro International Pair Trading
O2Micro International Limited Pair Trading Analysis
The ability to find closely correlated positions to Dow could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dow 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 Dow - 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 Dow Inc to buy it.
The correlation of Dow 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 Dow moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dow Inc 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 Dow 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 O2Micro International position
In addition to having O2Micro International 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?
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Check out Your Equity Center 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 gross domestic product. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Consideration for investing in O2Micro Stock
If you are still planning to invest in O2Micro International 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 O2Micro International's history and understand the potential risks before investing.
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