Based on the measurements of profitability obtained from Richelieu Hardware's financial statements, Richelieu Hardware is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Richelieu Hardware's ability to earn profits and add value for shareholders.
For Richelieu Hardware profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Richelieu Hardware to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Richelieu Hardware utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Richelieu Hardware's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Richelieu Hardware over time as well as its relative position and ranking within its peers.
Please note, there is a significant difference between Richelieu Hardware's value and its price as these two are different measures arrived at by different means. Investors typically determine if Richelieu Hardware is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Richelieu Hardware'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.
Richelieu Hardware Profit Margin vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Richelieu Hardware's current stock value. Our valuation model uses many indicators to compare Richelieu Hardware value to that of its competitors to determine the firm's financial worth.
Richelieu Hardware is currently regarded as top stock in price to sales category among its peers. It also is currently regarded as top stock in profit margin category among its peers fabricating about 0.04 of Profit Margin per Price To Sales. The ratio of Price To Sales to Profit Margin for Richelieu Hardware is roughly 25.45 . At this time, Richelieu Hardware's Price To Sales Ratio is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Richelieu Hardware by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Richelieu Hardware'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.
Richelieu Profit Margin vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Richelieu Hardware
P/S
=
MV Per Share
Revenue Per Share
=
1.26 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Richelieu Hardware
Profit Margin
=
Net Income
Revenue
X
100
=
0.05 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Richelieu Profit Margin Comparison
Richelieu Hardware is currently under evaluation in profit margin category among its peers.
Richelieu Hardware Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Richelieu Hardware, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Richelieu Hardware will eventually generate negative long term returns. The profitability progress is the general direction of Richelieu Hardware's change in net profit over the period of time. It can combine multiple indicators of Richelieu Hardware, 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.
Profitability drivers are factors that can directly affect your investment outlook on Richelieu Hardware. 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 Richelieu Hardware 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 Richelieu Hardware's important profitability drivers and their relationship over time.
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 Richelieu Hardware 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 Richelieu Hardware will appreciate offsetting losses from the drop in the long position's value.
Richelieu Hardware Pair Trading
Richelieu Hardware Pair Trading Analysis
The ability to find closely correlated positions to Richelieu Hardware could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Richelieu Hardware 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 Richelieu Hardware - 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 Richelieu Hardware to buy it.
The correlation of Richelieu Hardware 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 Richelieu Hardware moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Richelieu Hardware 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 Richelieu Hardware 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.
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To fully project Richelieu Hardware's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Richelieu Hardware 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 Richelieu Hardware's income statement, its balance sheet, and the statement of cash flows.
Potential Richelieu Hardware investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Richelieu Hardware investors may work on each financial statement separately, they are all related. The changes in Richelieu Hardware's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Richelieu Hardware'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.
