Snam SpA Return On Equity vs. Operating Margin
| SNMRY Stock | USD 8.87 0.01 0.11% |
For Snam SpA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Snam SpA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Snam SpA ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Snam SpA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Snam SpA ADR over time as well as its relative position and ranking within its peers.
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Snam SpA ADR Operating Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Snam SpA's current stock value. Our valuation model uses many indicators to compare Snam SpA value to that of its competitors to determine the firm's financial worth. Snam SpA ADR is currently regarded as top stock in return on equity category among its peers. It also is currently regarded as top stock in operating margin category among its peers reporting about 2.42 of Operating Margin per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Snam SpA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Snam SpA'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.Snam Operating Margin vs. Return On Equity
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.
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| = | 0.16 |
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.
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.
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| = | 0.40 % |
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.
Snam Operating Margin Comparison
Snam SpA is currently under evaluation in operating margin category among its peers.
Snam SpA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Snam SpA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Snam SpA will eventually generate negative long term returns. The profitability progress is the general direction of Snam SpA's change in net profit over the period of time. It can combine multiple indicators of Snam SpA, 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.
Snam S.p.A., together with its subsidiaries, engages in the operation of natural gas transport and storage infrastructure in Italy. Snam S.p.A. was founded in 1941 and is headquartered in San Donato Milanese, Italy. Snam Rete operates under UtilitiesRegulated Gas classification in the United States and is traded on OTC Exchange. It employs 3526 people.
Snam Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Snam SpA. 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 Snam SpA 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 Snam SpA's important profitability drivers and their relationship over time.
Use Snam SpA 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 Snam SpA 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 Snam SpA will appreciate offsetting losses from the drop in the long position's value.Snam SpA Pair Trading
Snam SpA ADR Pair Trading Analysis
The ability to find closely correlated positions to Snam SpA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Snam SpA 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 Snam SpA - 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 Snam SpA ADR to buy it.
The correlation of Snam SpA 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 Snam SpA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Snam SpA ADR 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 Snam SpA 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 Snam SpA position
In addition to having Snam SpA 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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Funds or Etfs that invest in the undervalued stocks of small to mid-sized companies. The Small Value Funds theme has 31 constituents at this time.
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Additional Tools for Snam Pink Sheet Analysis
When running Snam SpA's price analysis, check to measure Snam SpA'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 Snam SpA is operating at the current time. Most of Snam SpA's value examination focuses on studying past and present price action to predict the probability of Snam SpA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Snam SpA's price. Additionally, you may evaluate how the addition of Snam SpA to your portfolios can decrease your overall portfolio volatility.