Sumitomo Electric Gross Profit vs. Return On Equity
| SMTOF Stock | USD 16.57 0.00 0.00% |
For Sumitomo Electric profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sumitomo Electric to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sumitomo Electric Industries utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sumitomo Electric's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sumitomo Electric Industries over time as well as its relative position and ranking within its peers.
Sumitomo |
Sumitomo Electric Return On Equity vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Sumitomo Electric's current stock value. Our valuation model uses many indicators to compare Sumitomo Electric value to that of its competitors to determine the firm's financial worth. Sumitomo Electric Industries is currently regarded as top stock in gross profit category among its peers. It also is currently regarded as top stock in return on equity category among its peers . The ratio of Gross Profit to Return On Equity for Sumitomo Electric Industries is about Huge . 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 Sumitomo Electric's earnings, one of the primary drivers of an investment's value.Sumitomo Return On Equity vs. Gross Profit
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.
Sumitomo Electric |
| = | 573.94 B |
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.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Sumitomo Electric |
| = | 0.0562 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Sumitomo Return On Equity Comparison
Sumitomo Electric is currently under evaluation in return on equity category among its peers.
Sumitomo Electric Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Sumitomo Electric, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sumitomo Electric will eventually generate negative long term returns. The profitability progress is the general direction of Sumitomo Electric's change in net profit over the period of time. It can combine multiple indicators of Sumitomo Electric, 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.
Sumitomo Electric Industries, Ltd. manufactures and sells electric wires and cables worldwide. The company was founded in 1897 and is headquartered in Osaka, Japan. Sumitomo Electric operates under Auto Parts classification in the United States and is traded on OTC Exchange. It employs 281075 people.
Sumitomo Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Sumitomo Electric. 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 Sumitomo Electric 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 Sumitomo Electric's important profitability drivers and their relationship over time.
Use Sumitomo Electric 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 Sumitomo Electric 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 Sumitomo Electric will appreciate offsetting losses from the drop in the long position's value.Sumitomo Electric Pair Trading
Sumitomo Electric Industries Pair Trading Analysis
The ability to find closely correlated positions to Sumitomo Electric could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sumitomo Electric 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 Sumitomo Electric - 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 Sumitomo Electric Industries to buy it.
The correlation of Sumitomo Electric 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 Sumitomo Electric moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sumitomo Electric 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 Sumitomo Electric 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 Sumitomo Electric position
In addition to having Sumitomo Electric 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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Cash Cows
Entities with stable and reliable earnings or profits, which allows them to pay consistent dividends to their shareholders. The Cash Cows theme has 25 constituents at this time.
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Other Information on Investing in Sumitomo Pink Sheet
To fully project Sumitomo Electric's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sumitomo Electric 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 Sumitomo Electric's income statement, its balance sheet, and the statement of cash flows.