PureCycle Technologies Return On Equity vs. Retained Earnings
| PCTTW Stock | USD 4.10 0.12 2.84% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (0.24) | Current Value (0.25) | Quarterly Volatility 2.04134385 |
For PureCycle Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PureCycle Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PureCycle Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PureCycle Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PureCycle Technologies over time as well as its relative position and ranking within its peers.
PureCycle |
Is Specialty Chemicals 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 PureCycle Technologies. If investors know PureCycle 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 PureCycle Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Return On Assets (0.11) | Return On Equity (0.43) |
The market value of PureCycle Technologies is measured differently than its book value, which is the value of PureCycle that is recorded on the company's balance sheet. Investors also form their own opinion of PureCycle Technologies' value that differs from its market value or its book value, called intrinsic value, which is PureCycle Technologies' 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 PureCycle Technologies' market value can be influenced by many factors that don't directly affect PureCycle Technologies' 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 PureCycle Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if PureCycle Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PureCycle Technologies' 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.
PureCycle Technologies Retained Earnings vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining PureCycle Technologies's current stock value. Our valuation model uses many indicators to compare PureCycle Technologies value to that of its competitors to determine the firm's financial worth. PureCycle Technologies 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 retained earnings category among its peers . At this time, PureCycle Technologies' Return On Equity is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value PureCycle Technologies 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.PureCycle Retained Earnings 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.
PureCycle Technologies |
| = | -0.43 |
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.
Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
PureCycle Technologies |
| = | (344.24 M) |
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.
PureCycle Retained Earnings Comparison
PureCycle Technologies is currently under evaluation in retained earnings category among its peers.
PureCycle Technologies Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in PureCycle Technologies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PureCycle Technologies will eventually generate negative long term returns. The profitability progress is the general direction of PureCycle Technologies' change in net profit over the period of time. It can combine multiple indicators of PureCycle Technologies, 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 | ||
| Accumulated Other Comprehensive Income | -32 K | -30.4 K | |
| Net Interest Income | -8 M | -7.6 M | |
| Operating Income | -113.9 M | -108.2 M | |
| Net Loss | -86.9 M | -91.2 M | |
| Income Before Tax | -101.1 M | -96 M | |
| Net Loss | -101.7 M | -96.6 M | |
| Total Other Income Expense Net | 12.8 M | 13.5 M | |
| Net Loss | -76.3 M | -72.5 M | |
| Income Tax Expense | 650 K | 617.5 K | |
| Interest Income | 5.7 M | 6 M | |
| Non Operating Income Net Other | -5.5 M | -5.7 M | |
| Change To Netincome | 15 M | 16.2 M | |
| Net Loss | (0.62) | (0.65) | |
| Income Quality | 0.93 | 0.80 | |
| Net Income Per E B T | 1.01 | 1.17 |
PureCycle Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on PureCycle Technologies. 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 PureCycle Technologies 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 PureCycle Technologies' important profitability drivers and their relationship over time.
Use PureCycle Technologies 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 PureCycle Technologies 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 PureCycle Technologies will appreciate offsetting losses from the drop in the long position's value.PureCycle Technologies Pair Trading
PureCycle Technologies Pair Trading Analysis
The ability to find closely correlated positions to PureCycle Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PureCycle Technologies 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 PureCycle Technologies - 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 PureCycle Technologies to buy it.
The correlation of PureCycle Technologies 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 PureCycle Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PureCycle Technologies 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 PureCycle Technologies 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 PureCycle Technologies position
In addition to having PureCycle Technologies 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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Additional Tools for PureCycle Stock Analysis
When running PureCycle Technologies' price analysis, check to measure PureCycle Technologies' 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 PureCycle Technologies is operating at the current time. Most of PureCycle Technologies' value examination focuses on studying past and present price action to predict the probability of PureCycle Technologies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PureCycle Technologies' price. Additionally, you may evaluate how the addition of PureCycle Technologies to your portfolios can decrease your overall portfolio volatility.