Provident Financial Current Valuation vs. Operating Margin
| PQ3 Stock | EUR 19.30 0.30 1.53% |
For Provident Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Provident Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Provident Financial Services utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Provident Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Provident Financial Services over time as well as its relative position and ranking within its peers.
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Provident Financial Operating Margin vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Provident Financial's current stock value. Our valuation model uses many indicators to compare Provident Financial value to that of its competitors to determine the firm's financial worth. Provident Financial Services is regarded third in current valuation category among its peers. It also is regarded third in operating margin category among its peers . The ratio of Current Valuation to Operating Margin for Provident Financial Services is about 3,404,063,213 . 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 Provident Financial's earnings, one of the primary drivers of an investment's value.Provident Current Valuation vs. Competition
Provident Financial Services is regarded third in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Savings & Cooperative Banks industry is at this time estimated at about 24.47 Billion. Provident Financial holds roughly 1.73 Billion in current valuation claiming about 7% of equities listed under Savings & Cooperative Banks industry.
Provident Operating Margin vs. Current Valuation
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.
Provident Financial |
| = | 1.73 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.
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.
Provident Financial |
| = | 0.51 % |
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.
Provident Operating Margin Comparison
Provident Financial is regarded second in operating margin category among its peers.
Provident Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Provident Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Provident Financial will eventually generate negative long term returns. The profitability progress is the general direction of Provident Financial's change in net profit over the period of time. It can combine multiple indicators of Provident Financial, 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.
Provident Financial Services, Inc. operates as the holding company for Provident Bank that provides various banking services to individuals, families, and businesses in the United States. The company was founded in 18 and is headquartered in Jersey City, New Jersey. PROVIDENT FINL operates under Savings Cooperative Banks classification in Germany and is traded on Frankfurt Stock Exchange. It employs 959 people.
Provident Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Provident Financial. 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 Provident Financial 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 Provident Financial's important profitability drivers and their relationship over time.
Use Provident Financial 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 Provident Financial 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 Provident Financial will appreciate offsetting losses from the drop in the long position's value.Provident Financial Pair Trading
Provident Financial Services Pair Trading Analysis
The ability to find closely correlated positions to Provident Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Provident Financial 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 Provident Financial - 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 Provident Financial Services to buy it.
The correlation of Provident Financial 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 Provident Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Provident Financial 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 Provident Financial 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 Provident Financial position
In addition to having Provident Financial 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 Information and Resources on Investing in Provident Stock
When determining whether Provident Financial is a strong investment it is important to analyze Provident Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Provident Financial's future performance. For an informed investment choice regarding Provident Stock, refer to the following important reports:Check out Your Equity Center. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
To fully project Provident Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Provident Financial 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 Provident Financial's income statement, its balance sheet, and the statement of cash flows.