Based on Stella Jones' profitability indicators, Stella Jones may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Stella Jones' ability to earn profits and add value for shareholders.
For Stella Jones profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Stella Jones to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Stella Jones utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Stella Jones's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Stella Jones over time as well as its relative position and ranking within its peers.
Please note, there is a significant difference between Stella Jones' value and its price as these two are different measures arrived at by different means. Investors typically determine if Stella Jones is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Stella Jones' 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.
Stella Jones Return On Asset vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Stella Jones's current stock value. Our valuation model uses many indicators to compare Stella Jones value to that of its competitors to determine the firm's financial worth.
Stella Jones is currently regarded as top stock in operating margin category among its peers. It also is currently regarded as top stock in return on asset category among its peers reporting about 0.61 of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Stella Jones is roughly 1.64 . At this time, Stella Jones' 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 Stella Jones by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Stella Jones' 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.
Stella Return On Asset 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.
Stella Jones
Operating Margin
=
Operating Income
Revenue
X
100
=
0.14 %
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.
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.
Stella Jones
Return On Asset
=
Net Income
Total Assets
=
0.0869
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.
Stella Return On Asset Comparison
Stella Jones is currently under evaluation in return on asset category among its peers.
Stella Jones Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Stella Jones, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Stella Jones will eventually generate negative long term returns. The profitability progress is the general direction of Stella Jones' change in net profit over the period of time. It can combine multiple indicators of Stella Jones, 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 Stella Jones. 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 Stella Jones 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 Stella Jones' 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 Stella Jones 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 Stella Jones will appreciate offsetting losses from the drop in the long position's value.
Stella Jones Pair Trading
Stella Jones Pair Trading Analysis
The ability to find closely correlated positions to Stella Jones could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Stella Jones 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 Stella Jones - 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 Stella Jones to buy it.
The correlation of Stella Jones 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 Stella Jones moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Stella Jones 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 Stella Jones 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 Stella Jones position
In addition to having Stella Jones 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.
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Momentum
Large corporations operating in software, education, financial and car manufacturing industries. The Momentum theme has 40 constituents at this time.
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To fully project Stella Jones' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Stella Jones 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 Stella Jones' income statement, its balance sheet, and the statement of cash flows.
Potential Stella Jones investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Stella Jones investors may work on each financial statement separately, they are all related. The changes in Stella Jones's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Stella Jones'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.
