Shimano Price To Book vs. Return On Asset
| SHM Stock | EUR 131.60 0.90 0.69% |
For Shimano profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Shimano to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Shimano utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Shimano's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Shimano over time as well as its relative position and ranking within its peers.
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Shimano Return On Asset vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Shimano's current stock value. Our valuation model uses many indicators to compare Shimano value to that of its competitors to determine the firm's financial worth. Shimano 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 0.05 of Return On Asset per Price To Book. The ratio of Price To Book to Return On Asset for Shimano is roughly 19.84 . 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 Shimano's earnings, one of the primary drivers of an investment's value.Shimano 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.
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| = | 2.74 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.
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| = | 0.14 |
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.
Shimano Return On Asset Comparison
Shimano is currently under evaluation in return on asset category among its peers.
Shimano Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Shimano, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Shimano will eventually generate negative long term returns. The profitability progress is the general direction of Shimano's change in net profit over the period of time. It can combine multiple indicators of Shimano, 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.
Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. The company was founded in 1921 and is headquartered in Sakai, Japan. SHIMANO INC operates under Leisure classification in Germany and is traded on Frankfurt Stock Exchange. It employs 12244 people.
Shimano Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Shimano. 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 Shimano 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 Shimano's important profitability drivers and their relationship over time.
Use Shimano 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 Shimano 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 Shimano will appreciate offsetting losses from the drop in the long position's value.Shimano Pair Trading
Shimano Pair Trading Analysis
The ability to find closely correlated positions to Shimano could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Shimano 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 Shimano - 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 Shimano to buy it.
The correlation of Shimano 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 Shimano moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Shimano 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 Shimano 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 Shimano position
In addition to having Shimano 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 Shipping Containers Thematic Idea Now
Shipping Containers
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Shipping Containers theme has 16 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 Shipping Containers Theme or any other thematic opportunities.
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Other Information on Investing in Shimano Stock
To fully project Shimano's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Shimano 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 Shimano's income statement, its balance sheet, and the statement of cash flows.