Soitec SA Return On Asset vs. Return On Equity
| SOI Stock | EUR 84.75 11.55 15.78% |
For Soitec SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Soitec SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Soitec SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Soitec SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Soitec SA over time as well as its relative position and ranking within its peers.
Soitec |
Soitec SA Return On Equity vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Soitec SA's current stock value. Our valuation model uses many indicators to compare Soitec SA value to that of its competitors to determine the firm's financial worth. Soitec SA is currently regarded as top stock in return on asset category among its peers. It also is currently regarded as top stock in return on equity category among its peers reporting about 3.07 of Return On Equity per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value Soitec SA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Soitec SA'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.Soitec Return On Equity vs. Return On Asset
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.
Soitec SA |
| = | 0.0745 |
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.
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.
Soitec SA |
| = | 0.23 |
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.
Soitec Return On Equity Comparison
Soitec SA is currently under evaluation in return on equity category among its peers.
Soitec SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Soitec SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Soitec SA will eventually generate negative long term returns. The profitability progress is the general direction of Soitec SA's change in net profit over the period of time. It can combine multiple indicators of Soitec SA, 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.
Soitec S.A. designs and produces semiconductor materials worldwide. Soitec S.A. was founded in 1992 and is headquartered in Bernin, France. Soitec S operates under Semiconductor Equipment Materials classification in France and is traded on Paris Stock Exchange. It employs 1250 people.
Soitec Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Soitec SA. 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 Soitec SA 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 Soitec SA's important profitability drivers and their relationship over time.
Use Soitec SA 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 Soitec SA 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 Soitec SA will appreciate offsetting losses from the drop in the long position's value.Soitec SA Pair Trading
Soitec SA Pair Trading Analysis
The ability to find closely correlated positions to Soitec SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Soitec SA 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 Soitec SA - 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 Soitec SA to buy it.
The correlation of Soitec SA 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 Soitec SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Soitec SA 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 Soitec SA 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 Soitec SA position
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Other Information on Investing in Soitec Stock
To fully project Soitec SA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Soitec SA 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 Soitec SA's income statement, its balance sheet, and the statement of cash flows.