South32 Price To Book vs. Profit Margin
| S32 Stock | 4,100 139.00 3.28% |
For South32 profitability analysis, we use financial ratios and fundamental drivers that measure the ability of South32 to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well South32 utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between South32's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of South32 over time as well as its relative position and ranking within its peers.
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South32 Profit Margin vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining South32's current stock value. Our valuation model uses many indicators to compare South32 value to that of its competitors to determine the firm's financial worth. South32 is currently regarded as top stock in price to book category among its peers. It also is currently regarded as top stock in profit margin category among its peers fabricating about 0.23 of Profit Margin per Price To Book. The ratio of Price To Book to Profit Margin for South32 is roughly 4.29 . 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 South32's earnings, one of the primary drivers of an investment's value.South32 Profit Margin vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
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| = | 1.21 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.
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| = | 0.28 % |
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.
South32 Profit Margin Comparison
South32 is currently under evaluation in profit margin category among its peers.
South32 Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on South32. 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 South32 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 South32's important profitability drivers and their relationship over time.
Use South32 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 South32 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 South32 will appreciate offsetting losses from the drop in the long position's value.South32 Pair Trading
South32 Pair Trading Analysis
The ability to find closely correlated positions to South32 could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace South32 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 South32 - 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 South32 to buy it.
The correlation of South32 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 South32 moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if South32 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 South32 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 South32 position
In addition to having South32 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 Disruptive Technologies Thematic Idea Now
Disruptive Technologies
New or established technology companies and funds across multiple sectors that are involved in development or marketing of products or services that experience disruptive trends and that are at the forefront of discussions on Wall Street. The Disruptive Technologies theme has 64 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 Disruptive Technologies Theme or any other thematic opportunities.
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Other Information on Investing in South32 Stock
To fully project South32's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of South32 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 South32's income statement, its balance sheet, and the statement of cash flows.