Steel Dynamics Profit Margin vs. Cash Per Share
| SD5 Stock | EUR 134.76 0.32 0.24% |
For Steel Dynamics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Steel Dynamics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Steel Dynamics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Steel Dynamics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Steel Dynamics over time as well as its relative position and ranking within its peers.
Steel |
Steel Dynamics Cash Per Share vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Steel Dynamics's current stock value. Our valuation model uses many indicators to compare Steel Dynamics value to that of its competitors to determine the firm's financial worth. Steel Dynamics is currently regarded as top stock in profit margin category among its peers. It also is currently regarded as top stock in cash per share category among its peers fabricating about 28.30 of Cash Per Share per Profit Margin. 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 Steel Dynamics' earnings, one of the primary drivers of an investment's value.Steel Cash Per Share vs. Profit Margin
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.
Steel Dynamics |
| = | 0.17 % |
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.
Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.
Steel Dynamics |
| = | 4.91 X |
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.
Steel Cash Per Share Comparison
Steel Dynamics is currently under evaluation in cash per share category among its peers.
Steel Dynamics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Steel Dynamics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Steel Dynamics will eventually generate negative long term returns. The profitability progress is the general direction of Steel Dynamics' change in net profit over the period of time. It can combine multiple indicators of Steel Dynamics, 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.
Steel Dynamics, Inc., together with its subsidiaries, engages in the steel products manufacturing and metals recycling businesses in the United States and internationally. Steel Dynamics, Inc. was founded in 1993 and is headquartered in Fort Wayne, Indiana. STEEL DYNAMIC operates under Steel classification in Germany and is traded on Frankfurt Stock Exchange. It employs 8200 people.
Steel Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Steel Dynamics. 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 Steel Dynamics 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 Steel Dynamics' important profitability drivers and their relationship over time.
Use Steel Dynamics 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 Steel Dynamics 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 Steel Dynamics will appreciate offsetting losses from the drop in the long position's value.Steel Dynamics Pair Trading
Steel Dynamics Pair Trading Analysis
The ability to find closely correlated positions to Steel Dynamics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Steel Dynamics 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 Steel Dynamics - 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 Steel Dynamics to buy it.
The correlation of Steel Dynamics 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 Steel Dynamics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Steel Dynamics 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 Steel Dynamics 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 Steel Dynamics position
In addition to having Steel Dynamics 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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Restaurants
Entities that are involved in restaurant business, as well as coffee shop chains and other eateries. The Restaurants theme has 37 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 Restaurants Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Steel Stock
When determining whether Steel Dynamics is a strong investment it is important to analyze Steel Dynamics' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Steel Dynamics' future performance. For an informed investment choice regarding Steel Stock, refer to the following important reports:Check out World Market Map. For more detail on how to invest in Steel Stock please use our How to Invest in Steel Dynamics guide.You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
To fully project Steel Dynamics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Steel Dynamics 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 Steel Dynamics' income statement, its balance sheet, and the statement of cash flows.