Southern Energy Return On Asset vs. Operating Margin

SOU Stock  CAD 0.12  0.02  20.00%   
Based on the key profitability measurements obtained from Southern Energy's financial statements, Southern Energy Corp may not be well positioned to generate adequate gross income at this time. It has a very high risk of underperforming in January. Profitability indicators assess Southern Energy's ability to earn profits and add value for shareholders. At this time, Southern Energy's EV To Sales is fairly stable compared to the past year. Sales General And Administrative To Revenue is likely to climb to 0.54 in 2024, whereas Days Sales Outstanding is likely to drop 38.31 in 2024. At this time, Southern Energy's Income Tax Expense is fairly stable compared to the past year. Net Income Applicable To Common Shares is likely to climb to about 11.2 M in 2024, despite the fact that Operating Income is likely to grow to (7 M).
For Southern Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Southern Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Southern Energy Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Southern Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Southern Energy Corp 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 Southern Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Southern Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Southern Energy's 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.

Southern Energy Corp Operating Margin vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Southern Energy's current stock value. Our valuation model uses many indicators to compare Southern Energy value to that of its competitors to determine the firm's financial worth.
Southern Energy Corp is rated fifth in return on asset category among its peers. It is rated fourth in operating margin category among its peers . At this time, Southern Energy's Operating Profit Margin is fairly stable compared to the past year. 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 Southern Energy's earnings, one of the primary drivers of an investment's value.

Southern Operating Margin 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.

Southern Energy

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.34
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.
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.

Southern Energy

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(0.60) %
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.

Southern Operating Margin Comparison

Southern Energy is currently under evaluation in operating margin category among its peers.

Southern Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Southern Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Southern Energy will eventually generate negative long term returns. The profitability progress is the general direction of Southern Energy's change in net profit over the period of time. It can combine multiple indicators of Southern Energy, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-711 K-675.5 K
Operating Income-7.4 M-7 M
Income Before Tax-46.8 M-44.5 M
Total Other Income Expense Net-36.9 M-35.1 M
Net Loss-46.8 M-44.5 M
Income Tax ExpenseM7.3 M
Net Loss-46.8 M-44.5 M
Net Income Applicable To Common Shares10.7 M11.2 M
Net Interest Income-2.6 M-2.4 M
Interest Income195 K204.8 K
Change To Netincome707.4 K742.8 K
Net Loss(0.45)(0.47)
Income Quality(0.08)(0.08)
Net Income Per E B T 1.35  0.77 

Southern Profitability Driver Comparison

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

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Additional Tools for Southern Stock Analysis

When running Southern Energy's price analysis, check to measure Southern Energy'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 Southern Energy is operating at the current time. Most of Southern Energy's value examination focuses on studying past and present price action to predict the probability of Southern Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Southern Energy's price. Additionally, you may evaluate how the addition of Southern Energy to your portfolios can decrease your overall portfolio volatility.