Royal Unibrew Return On Equity vs. Return On Asset
| RBREW Stock | DKK 525.00 12.00 2.23% |
For Royal Unibrew profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Royal Unibrew to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Royal Unibrew AS utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Royal Unibrew's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Royal Unibrew AS over time as well as its relative position and ranking within its peers.
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Royal Unibrew AS Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Royal Unibrew's current stock value. Our valuation model uses many indicators to compare Royal Unibrew value to that of its competitors to determine the firm's financial worth. Royal Unibrew AS is currently regarded as top stock in return on equity category among its peers. It also is currently regarded as top stock in return on asset category among its peers reporting about 0.20 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Royal Unibrew AS is roughly 4.95 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Royal Unibrew by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Royal Unibrew's 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.Royal Return On Asset 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.
Royal Unibrew |
| = | 0.37 |
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.
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.
Royal Unibrew |
| = | 0.0757 |
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.
Royal Return On Asset Comparison
Royal Unibrew is currently under evaluation in return on asset category among its peers.
Royal Unibrew Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Royal Unibrew, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Royal Unibrew will eventually generate negative long term returns. The profitability progress is the general direction of Royal Unibrew's change in net profit over the period of time. It can combine multiple indicators of Royal Unibrew, 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.
Royal Unibrew AS produces, markets, sells, and distributes beer, malt, soft drinks, ciders, and long drinks. The company was formerly known as The Danish Brewery Group AS and changed its name to Royal Unibrew AS in May 2005. Royal UNIBREW operates under Beverages - Brewers classification in Denmark and is traded on Copenhagen Stock Exchange. It employs 2416 people.
Royal Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Royal Unibrew. 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 Royal Unibrew 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 Royal Unibrew's important profitability drivers and their relationship over time.
Use Royal Unibrew 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 Royal Unibrew 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 Royal Unibrew will appreciate offsetting losses from the drop in the long position's value.Royal Unibrew Pair Trading
Royal Unibrew AS Pair Trading Analysis
The ability to find closely correlated positions to Royal Unibrew could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Royal Unibrew 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 Royal Unibrew - 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 Royal Unibrew AS to buy it.
The correlation of Royal Unibrew 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 Royal Unibrew moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Royal Unibrew AS 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 Royal Unibrew 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 Royal Unibrew position
In addition to having Royal Unibrew 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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Other Information on Investing in Royal Stock
To fully project Royal Unibrew's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Royal Unibrew AS 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 Royal Unibrew's income statement, its balance sheet, and the statement of cash flows.