STM Group Return On Equity vs. Return On Asset
| 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 Return On Asset 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 currently regarded as top stock in return on equity category among its peers. It also is currently regarded as top stock in return on asset category among its peers reporting about 0.57 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for STM Group Plc is roughly 1.75 . 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 Return On Asset 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.
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.
STM Group |
| = | 0.0238 |
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.
STM Return On Asset Comparison
STM Group is currently under evaluation in return on asset category among its peers.
STM Group Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in STM Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, STM Group will eventually generate negative long term returns. The profitability progress is the general direction of STM Group's change in net profit over the period of time. It can combine multiple indicators of STM Group, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -1.7 M | -1.6 M | |
| Operating Income | 1.2 M | 2.2 M | |
| Income Before Tax | 442 K | 419.9 K | |
| Total Other Income Expense Net | -785 K | -824.2 K | |
| Net Income | 417 K | 396.1 K | |
| Income Tax Expense | 25 K | 23.8 K | |
| Net Income From Continuing Ops | 417 K | 396.1 K | |
| Net Income Applicable To Common Shares | 2 M | 2.5 M | |
| Net Interest Income | -689 K | -654.5 K | |
| Change To Netincome | -153.9 K | -161.6 K |
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?
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Buywrite ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Buywrite ETFs theme has 25 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 Buywrite ETFs 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.