Shin Etsu Profit Margin vs. Operating Margin
| SHECY Stock | USD 18.25 0.13 0.71% |
For Shin Etsu profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Shin Etsu to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Shin Etsu Chemical Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Shin Etsu's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Shin Etsu Chemical Co over time as well as its relative position and ranking within its peers.
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Shin Etsu Chemical Operating Margin vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Shin Etsu's current stock value. Our valuation model uses many indicators to compare Shin Etsu value to that of its competitors to determine the firm's financial worth. Shin Etsu Chemical Co is currently regarded as top stock in profit margin category among its peers. It also is currently regarded as top stock in operating margin category among its peers reporting about 1.38 of Operating Margin per Profit Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Shin Etsu by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Shin Etsu's Pink Sheet. 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.Shin Operating Margin 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.
Shin Etsu |
| = | 0.26 % |
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.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Shin Etsu |
| = | 0.36 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Shin Operating Margin Comparison
Shin Etsu is currently under evaluation in operating margin category among its peers.
Shin Etsu Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Shin Etsu, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Shin Etsu will eventually generate negative long term returns. The profitability progress is the general direction of Shin Etsu's change in net profit over the period of time. It can combine multiple indicators of Shin Etsu, 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.
Shin-Etsu Chemical Co., Ltd. engages in the polyvinyl chloride chlor-alkali, semiconductor silicon, silicones, electronics and functional materials, specialty chemicals, processing, and trading and specialized businesses worldwide. The company was incorporated in 1926 and is headquartered in Tokyo, Japan. Shin-Etsu Chemical is traded on OTC Exchange in the United States.
Shin Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Shin Etsu. 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 Shin Etsu 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 Shin Etsu's important profitability drivers and their relationship over time.
Use Shin Etsu 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 Shin Etsu 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 Shin Etsu will appreciate offsetting losses from the drop in the long position's value.Shin Etsu Pair Trading
Shin Etsu Chemical Co Pair Trading Analysis
The ability to find closely correlated positions to Shin Etsu could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Shin Etsu 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 Shin Etsu - 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 Shin Etsu Chemical Co to buy it.
The correlation of Shin Etsu 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 Shin Etsu moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Shin Etsu Chemical 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 Shin Etsu 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 Shin Etsu position
In addition to having Shin Etsu 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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Additional Tools for Shin Pink Sheet Analysis
When running Shin Etsu's price analysis, check to measure Shin Etsu's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Shin Etsu is operating at the current time. Most of Shin Etsu's value examination focuses on studying past and present price action to predict the probability of Shin Etsu's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Shin Etsu's price. Additionally, you may evaluate how the addition of Shin Etsu to your portfolios can decrease your overall portfolio volatility.