Element Solutions Return On Equity vs. Price To Book
| PLQ Stock | EUR 24.40 0.40 1.61% |
For Element Solutions profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Element Solutions to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Element Solutions utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Element Solutions's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Element Solutions over time as well as its relative position and ranking within its peers.
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Element Solutions Price To Book vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Element Solutions's current stock value. Our valuation model uses many indicators to compare Element Solutions value to that of its competitors to determine the firm's financial worth. Element Solutions 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 price to book category among its peers fabricating about 25.56 of Price To Book per Return On Equity. 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 Element Solutions' earnings, one of the primary drivers of an investment's value.Element Price To Book 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.
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| = | 0.0768 |
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.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
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| = | 1.96 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Element Price To Book Comparison
Element Solutions is currently under evaluation in price to book category among its peers.
Element Solutions Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Element Solutions, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Element Solutions will eventually generate negative long term returns. The profitability progress is the general direction of Element Solutions' change in net profit over the period of time. It can combine multiple indicators of Element Solutions, 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.
Element Solutions Inc produces and sells specialty chemical products the United States, China, and internationally. Element Solutions Inc was founded in 1922 and is based in Fort Lauderdale, Florida. ELEMENT SOLUTIONS is traded on Frankfurt Stock Exchange in Germany.
Element Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Element Solutions. 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 Element Solutions 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 Element Solutions' important profitability drivers and their relationship over time.
Use Element Solutions 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 Element Solutions 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 Element Solutions will appreciate offsetting losses from the drop in the long position's value.Element Solutions Pair Trading
Element Solutions Pair Trading Analysis
The ability to find closely correlated positions to Element Solutions could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Element Solutions 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 Element Solutions - 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 Element Solutions to buy it.
The correlation of Element Solutions 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 Element Solutions moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Element Solutions 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 Element Solutions 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 Element Solutions position
In addition to having Element Solutions 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?
Run Semiconductor Thematic Idea Now
Semiconductor
Companies involved in production of semiconductor and semiconductor materials. The Semiconductor theme has 38 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 Semiconductor Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Element Stock
When determining whether Element Solutions offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Element Solutions' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Element Solutions Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Element Solutions Stock:Check out Your Equity Center. For more detail on how to invest in Element Stock please use our How to Invest in Element Solutions guide.You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
To fully project Element Solutions' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Element Solutions at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Element Solutions' income statement, its balance sheet, and the statement of cash flows.