SCI AG Price To Book vs. Return On Asset

SCI Stock  EUR 18.40  0.50  2.65%   
Considering the key profitability indicators obtained from SCI AG's historical financial statements, SCI AG 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 SCI AG's ability to earn profits and add value for shareholders.
For SCI AG profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SCI AG to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SCI AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SCI AG's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SCI AG over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between SCI AG's value and its price as these two are different measures arrived at by different means. Investors typically determine if SCI AG is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SCI AG'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.

SCI AG Return On Asset vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining SCI AG's current stock value. Our valuation model uses many indicators to compare SCI AG value to that of its competitors to determine the firm's financial worth.
SCI AG is currently regarded as top stock in price to book category among its peers. It also is currently regarded as top stock in return on asset category among its peers reporting about  0.06  of Return On Asset per Price To Book. The ratio of Price To Book to Return On Asset for SCI AG is roughly  16.62 . 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 SCI AG's earnings, one of the primary drivers of an investment's value.

SCI Return On Asset 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.

SCI AG

P/B

 = 

MV Per Share

BV Per Share

 = 
0.98 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.
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.

SCI AG

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0592
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.

SCI Return On Asset Comparison

SCI AG is currently under evaluation in return on asset category among its peers.

SCI AG Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in SCI AG, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SCI AG will eventually generate negative long term returns. The profitability progress is the general direction of SCI AG's change in net profit over the period of time. It can combine multiple indicators of SCI AG, 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.
SCI AG focuses on special situations in the German stock market, such as acquisitions or squeeze-outs. It identifies investment opportunities in relation to corporate restructuring and turnaround situations. SCI AG is traded on Stock Exchange in Germany.

SCI Profitability Driver Comparison

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

Use SCI AG 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 SCI AG 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 SCI AG will appreciate offsetting losses from the drop in the long position's value.

SCI AG Pair Trading

SCI AG Pair Trading Analysis

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

In addition to having SCI AG 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 Beer and Liquor Thematic Idea Now

Beer and Liquor
Beer and Liquor Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Beer and Liquor theme has 32 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 Beer and Liquor Theme or any other thematic opportunities.
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Other Information on Investing in SCI Stock

To fully project SCI AG's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of SCI AG 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 SCI AG's income statement, its balance sheet, and the statement of cash flows.
Potential SCI AG investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although SCI AG investors may work on each financial statement separately, they are all related. The changes in SCI AG's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on SCI AG'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.