Solitron Devices Price To Book vs. Operating Margin

SODI Stock  USD 15.62  0.38  2.38%   
Based on Solitron Devices' profitability indicators, Solitron Devices 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 Solitron Devices' ability to earn profits and add value for shareholders.
For Solitron Devices profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Solitron Devices to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Solitron Devices utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Solitron Devices's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Solitron Devices over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Solitron Devices' value and its price as these two are different measures arrived at by different means. Investors typically determine if Solitron Devices is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Solitron Devices' 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.

Solitron Devices Operating Margin vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Solitron Devices's current stock value. Our valuation model uses many indicators to compare Solitron Devices value to that of its competitors to determine the firm's financial worth.
Solitron Devices is rated below average in price to book category among its peers. It is rated below average in operating margin category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Solitron Devices by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Solitron Devices' 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.

Solitron Operating Margin 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.

Solitron Devices

P/B

 = 

MV Per Share

BV Per Share

 = 
1.69 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.
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.

Solitron Devices

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(0.12) %
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.

Solitron Operating Margin Comparison

Solitron Devices is currently under evaluation in operating margin category among its peers.

Solitron Devices Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Solitron Devices, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Solitron Devices will eventually generate negative long term returns. The profitability progress is the general direction of Solitron Devices' change in net profit over the period of time. It can combine multiple indicators of Solitron Devices, 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.
Solitron Devices, Inc. designs, develops, manufactures, and markets solid-state semiconductor components and related devices primarily for the military and aerospace markets. The company was incorporated in 1959 and is headquartered in West Palm Beach, Florida. Solitron Devices operates under Semiconductor Equipment Materials classification in the United States and is traded on OTC Exchange. It employs 54 people.

Solitron Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Solitron Devices. 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 Solitron Devices 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 Solitron Devices' important profitability drivers and their relationship over time.

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Other Information on Investing in Solitron Pink Sheet

To fully project Solitron Devices' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Solitron Devices 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 Solitron Devices' income statement, its balance sheet, and the statement of cash flows.
Potential Solitron Devices investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Solitron Devices investors may work on each financial statement separately, they are all related. The changes in Solitron Devices's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Solitron Devices'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.