STM Group Return On Equity vs. EBITDA
| STM Stock | 61.50 0.00 0.00% |
For STM Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of STM Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well STM Group Plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between STM Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of STM Group Plc over time as well as its relative position and ranking within its peers.
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STM Group Plc EBITDA vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining STM Group's current stock value. Our valuation model uses many indicators to compare STM Group value to that of its competitors to determine the firm's financial worth. STM Group Plc is rated second in return on equity category among its peers. It is rated fifth in ebitda category among its peers totaling about 76,738,609 of EBITDA per Return On Equity. 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 STM Group's earnings, one of the primary drivers of an investment's value.STM EBITDA 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.
STM Group |
| = | 0.0417 |
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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
STM Group |
| = | 3.2 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
STM EBITDA Comparison
STM Group is currently under evaluation in ebitda category among its peers.
STM Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on STM Group. 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 STM Group 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 STM Group's important profitability drivers and their relationship over time.
Use STM Group 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 STM Group 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 STM Group will appreciate offsetting losses from the drop in the long position's value.STM Group Pair Trading
STM Group Plc Pair Trading Analysis
The ability to find closely correlated positions to STM Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace STM Group 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 STM Group - 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 STM Group Plc to buy it.
The correlation of STM Group 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 STM Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if STM Group Plc 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 STM Group 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 STM Group position
In addition to having STM Group 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?
Run Utilities Thematic Idea Now
Utilities
Highly leveraged corporations that deliver utilities such as power, water or gas to public or business. The Utilities theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Utilities Theme or any other thematic opportunities.
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Other Information on Investing in STM Stock
To fully project STM Group's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of STM Group Plc 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 STM Group's income statement, its balance sheet, and the statement of cash flows.