Power Fi Return On Asset vs. Net Income

PWF-PP Preferred Stock  CAD 15.87  0.10  0.63%   
Considering the key profitability indicators obtained from Power Fi's historical financial statements, Power Fi 440 may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Power Fi's ability to earn profits and add value for shareholders.
For Power Fi profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Power Fi to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Power Fi 440 utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Power Fi's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Power Fi 440 over time as well as its relative position and ranking within its peers.
  
Check out Your Equity Center.
Please note, there is a significant difference between Power Fi's value and its price as these two are different measures arrived at by different means. Investors typically determine if Power Fi is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Power Fi'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.

Power Fi 440 Net Income vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Power Fi's current stock value. Our valuation model uses many indicators to compare Power Fi value to that of its competitors to determine the firm's financial worth.
Power Fi 440 is considered to be number one stock in return on asset category among its peers. It also is considered to be number one stock in net income category among its peers making up about  401,176,470,588  of Net Income per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value Power Fi by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Power Fi's Preferred Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Power Net Income vs. Return On Asset

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.

Power Fi

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0051
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.
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.

Power Fi

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
2.05 B
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.

Power Net Income Comparison

Power Fi is currently under evaluation in net income category among its peers.

Power Fi Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Power Fi, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Power Fi will eventually generate negative long term returns. The profitability progress is the general direction of Power Fi's change in net profit over the period of time. It can combine multiple indicators of Power Fi, 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.
Power Financial Corporation provides financial services in Canada, the United States, Europe, and Asia. Power Financial Corporation operates as a subsidiary of Power Corporation of Canada. PWR FNL operates under InsuranceLife classification in Canada and is traded on Toronto Stock Exchange. It employs 28400 people.

Power Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Power Fi. 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 Power Fi 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 Power Fi's important profitability drivers and their relationship over time.

Use Power Fi 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 Power Fi 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 Power Fi will appreciate offsetting losses from the drop in the long position's value.

Power Fi Pair Trading

Power Fi 440 Pair Trading Analysis

The ability to find closely correlated positions to Power Fi could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Power Fi 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 Power Fi - 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 Power Fi 440 to buy it.
The correlation of Power Fi 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 Power Fi moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Power Fi 440 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 Power Fi 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Power Fi position

In addition to having Power Fi 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 Technology Thematic Idea Now

Technology
Technology Theme
Companies that are involved in development or distribution of technologically based goods and services such as software, IT or electronics. The Technology theme has 30 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 Technology Theme or any other thematic opportunities.
View All  Next Launch

Other Information on Investing in Power Preferred Stock

To fully project Power Fi's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Power Fi 440 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 Power Fi's income statement, its balance sheet, and the statement of cash flows.
Potential Power Fi investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Power Fi investors may work on each financial statement separately, they are all related. The changes in Power Fi's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Power Fi's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.