Proto Labs Net Income vs. Return On Equity
Is Industrial Machinery & Supplies & Components 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 Proto Labs. Anticipated expansion of Proto directly elevates investor willingness to pay premium valuations. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive Proto Labs assessment requires weighing all these inputs, though not all factors influence outcomes equally.
The market value of Proto Labs is measured differently than its book value, which is the value of Proto that is recorded on the company's balance sheet. Investors also form their own opinion of Proto Labs' value that differs from its market value or its book value, called intrinsic value, which is Proto Labs' 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 Proto Labs' market value can be influenced by many factors that don't directly affect Proto Labs' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
It's important to distinguish between Proto Labs' intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Proto Labs should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Meanwhile, Proto Labs' quoted price indicates the marketplace figure where supply meets demand through bilateral consent.
Proto Labs Return On Equity vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Proto Labs's current stock value. Our valuation model uses many indicators to compare Proto Labs value to that of its competitors to determine the firm's financial worth. Proto Labs is rated below average in net income category among its peers. It is rated below average in return on equity category among its peers . The ratio of Net Income to Return On Equity for Proto Labs is about 670,063,091 . 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 Proto Labs' earnings, one of the primary drivers of an investment's value.Proto Return On Equity vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Proto Labs |
| = | 21.24 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
Proto Labs |
| = | 0.0317 |
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.
Proto Return On Equity Comparison
Proto Labs is currently under evaluation in return on equity category among its peers.
Proto Labs Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Proto Labs, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Proto Labs will eventually generate negative long term returns. The profitability progress is the general direction of Proto Labs' change in net profit over the period of time. It can combine multiple indicators of Proto Labs, 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.
Proto Labs, Inc., together with its subsidiaries, operates as an e-commerce driven digital manufacturer of custom prototypes and on-demand production parts in the worldwide. The company was incorporated in 1999 and is headquartered in Maple Plain, Minnesota. Proto Labs operates under Metal Fabrication classification in the United States and is traded on New York Stock Exchange. It employs 2663 people.
Proto Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Proto Labs. 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 Proto Labs 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 Proto Labs' important profitability drivers and their relationship over time.
Proto Labs Earnings per Share Projection vs Actual
Use Proto Labs 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 Proto Labs 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 Proto Labs will appreciate offsetting losses from the drop in the long position's value.Proto Labs Pair Trading
Proto Labs Pair Trading Analysis
The ability to find closely correlated positions to Proto Labs could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Proto Labs 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 Proto Labs - 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 Proto Labs to buy it.
The correlation of Proto Labs 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 Proto Labs moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Proto Labs 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 Proto Labs 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 Proto Labs position
In addition to having Proto Labs 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 Small Cap ETFs Thematic Idea Now
Small Cap ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Small Cap ETFs theme has 187 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 Small Cap ETFs Theme or any other thematic opportunities.
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Check out Your Equity Center. For information on how to trade Proto Stock refer to our How to Trade Proto Stock guide.You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
To fully project Proto Labs' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Proto Labs 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 Proto Labs' income statement, its balance sheet, and the statement of cash flows.