Based on the key profitability measurements obtained from Savaria's financial statements, Savaria is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in December. Profitability indicators assess Savaria's ability to earn profits and add value for shareholders.
Savaria Operating Profit Margin
0.0862
At this time, Savaria's Price To Sales Ratio is very stable compared to the past year. As of the 27th of November 2024, Days Sales Outstanding is likely to grow to 64.17, while EV To Sales is likely to drop 1.38. At this time, Savaria's Net Income Per Share is very stable compared to the past year.
For Savaria profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Savaria to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Savaria utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Savaria's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Savaria over time as well as its relative position and ranking within its peers.
Please note, there is a significant difference between Savaria's value and its price as these two are different measures arrived at by different means. Investors typically determine if Savaria is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Savaria'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.
Savaria Gross Profit vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Savaria's current stock value. Our valuation model uses many indicators to compare Savaria value to that of its competitors to determine the firm's financial worth.
Savaria is rated second in operating margin category among its peers. It also is rated second in gross profit category among its peers fabricating about 1,979,525,292 of Gross Profit per Operating Margin. At this time, Savaria's Operating Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Savaria by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Savaria's Stock. 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.
Savaria Gross Profit vs. Operating Margin
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.
Savaria
Operating Margin
=
Operating Income
Revenue
X
100
=
0.13 %
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.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Savaria
Gross Profit
=
Revenue
-
Cost of Revenue
=
254.37 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Savaria Gross Profit Comparison
Savaria is currently under evaluation in gross profit category among its peers.
Savaria Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Savaria, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Savaria will eventually generate negative long term returns. The profitability progress is the general direction of Savaria's change in net profit over the period of time. It can combine multiple indicators of Savaria, 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.
Profitability drivers are factors that can directly affect your investment outlook on Savaria. 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 Savaria 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 Savaria's important profitability drivers and their relationship over time.
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 Savaria 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 Savaria will appreciate offsetting losses from the drop in the long position's value.
Savaria Pair Trading
Savaria Pair Trading Analysis
The ability to find closely correlated positions to Savaria could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Savaria 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 Savaria - 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 Savaria to buy it.
The correlation of Savaria 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 Savaria moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Savaria 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 Savaria 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.
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To fully project Savaria's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Savaria 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 Savaria's income statement, its balance sheet, and the statement of cash flows.
Potential Savaria investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Savaria investors may work on each financial statement separately, they are all related. The changes in Savaria's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Savaria'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.
