Toho Co Return On Equity vs. Price To Earning

TOH Stock  EUR 39.40  0.80  2.07%   
Considering Toho Co's profitability and operating efficiency indicators, Toho Co may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess Toho Co's ability to earn profits and add value for shareholders.
For Toho Co profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Toho Co to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Toho Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Toho Co's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Toho Co 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 Toho Co's value and its price as these two are different measures arrived at by different means. Investors typically determine if Toho Co is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Toho Co'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.

Toho Co Price To Earning vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Toho Co's current stock value. Our valuation model uses many indicators to compare Toho Co value to that of its competitors to determine the firm's financial worth.
Toho Co is currently regarded as top stock in return on equity category among its peers. It also is currently regarded as top stock in price to earning category among its peers reporting about  267.84  of Price To Earning 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 Toho Co's earnings, one of the primary drivers of an investment's value.

Toho Price To Earning 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.

Toho Co

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0936
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.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Toho Co

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
25.07 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Toho Price To Earning Comparison

Toho is currently under evaluation in price to earning category among its peers.

Toho Co Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Toho Co, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Toho Co will eventually generate negative long term returns. The profitability progress is the general direction of Toho Co's change in net profit over the period of time. It can combine multiple indicators of Toho Co, 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.
Toho Co., Ltd. engages in the motion picture, theatrical production, and real estate management businesses in Japan. Toho Co., Ltd. was founded in 1932 and is based in Tokyo, Japan. TOHO LTD is traded on Frankfurt Stock Exchange in Germany.

Toho Profitability Driver Comparison

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

Use Toho Co 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 Toho Co 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 Toho Co will appreciate offsetting losses from the drop in the long position's value.

Toho Co Pair Trading

Toho Co Pair Trading Analysis

The ability to find closely correlated positions to Toho Co could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Toho Co 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 Toho Co - 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 Toho Co to buy it.
The correlation of Toho Co 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 Toho Co moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Toho Co 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 Toho Co 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Toho Co position

In addition to having Toho Co 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 Stores Thematic Idea Now

Stores
Stores Theme
Companies providing different types of retail and wholesale services. The Stores theme has 41 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 Stores Theme or any other thematic opportunities.
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Other Information on Investing in Toho Stock

To fully project Toho Co's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Toho Co 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 Toho Co's income statement, its balance sheet, and the statement of cash flows.
Potential Toho Co investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Toho Co investors may work on each financial statement separately, they are all related. The changes in Toho Co's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Toho Co's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.