Scientific Games Gross Profit vs. Current Valuation
| TJW Stock | EUR 88.00 1.00 1.12% |
For Scientific Games profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Scientific Games to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Scientific Games utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Scientific Games's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Scientific Games over time as well as its relative position and ranking within its peers.
Scientific |
Scientific Games Current Valuation vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Scientific Games's current stock value. Our valuation model uses many indicators to compare Scientific Games value to that of its competitors to determine the firm's financial worth. Scientific Games is rated second in gross profit category among its peers. It is rated below average in current valuation category among its peers reporting about 5.42 of Current Valuation per Gross Profit. 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 Scientific Games' earnings, one of the primary drivers of an investment's value.Scientific Current Valuation vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Scientific Games |
| = | 1.54 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Scientific Games |
| = | 8.37 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Scientific Games Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Scientific Games, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Scientific Games will eventually generate negative long term returns. The profitability progress is the general direction of Scientific Games' change in net profit over the period of time. It can combine multiple indicators of Scientific Games, 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.
Scientific Games Corporation develops technology-based products and services, and related content for the gaming, lottery, and digital gaming industries worldwide. The company was founded in 1984 and is headquartered in Las Vegas, Nevada. SCIENT GAMES operates under Gambling classification in Germany and is traded on Frankfurt Stock Exchange. It employs 9700 people.
Scientific Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Scientific Games. 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 Scientific Games 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 Scientific Games' important profitability drivers and their relationship over time.
Use Scientific Games 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 Scientific Games 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 Scientific Games will appreciate offsetting losses from the drop in the long position's value.Scientific Games Pair Trading
Scientific Games Pair Trading Analysis
The ability to find closely correlated positions to Scientific Games could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Scientific Games 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 Scientific Games - 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 Scientific Games to buy it.
The correlation of Scientific Games 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 Scientific Games moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Scientific Games 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 Scientific Games 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 Scientific Games position
In addition to having Scientific Games 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 Services Thematic Idea Now
Services
Companies involved in delivering services to business or consumers across different industries and sectors. The Services 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 Services Theme or any other thematic opportunities.
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Other Information on Investing in Scientific Stock
To fully project Scientific Games' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Scientific Games 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 Scientific Games' income statement, its balance sheet, and the statement of cash flows.