Twin Disc Gross Profit vs. Return On Equity
| TWIN Stock | USD 11.42 0.25 2.24% |
Gross Profit | First Reported 1985-09-30 | Previous Quarter 25.1 M | Current Value 19.3 M | Quarterly Volatility 9.7 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.21 | 0.2823 |
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For Twin Disc profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Twin Disc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Twin Disc Incorporated utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Twin Disc's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Twin Disc Incorporated over time as well as its relative position and ranking within its peers.
Twin |
Is Construction Machinery & Heavy Transportation Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Twin Disc. If investors know Twin will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Twin Disc listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.074 | Dividend Share 0.16 | Earnings Share 0.68 | Revenue Per Share 22.15 | Quarterly Revenue Growth 0.147 |
The market value of Twin Disc is measured differently than its book value, which is the value of Twin that is recorded on the company's balance sheet. Investors also form their own opinion of Twin Disc's value that differs from its market value or its book value, called intrinsic value, which is Twin Disc's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Twin Disc's market value can be influenced by many factors that don't directly affect Twin Disc's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Twin Disc's value and its price as these two are different measures arrived at by different means. Investors typically determine if Twin Disc is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Twin Disc'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.
Twin Disc Return On Equity vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Twin Disc's current stock value. Our valuation model uses many indicators to compare Twin Disc value to that of its competitors to determine the firm's financial worth. Twin Disc Incorporated is rated below average in gross profit category among its peers. It also is rated below average in return on equity category among its peers . The ratio of Gross Profit to Return On Equity for Twin Disc Incorporated is about 1,159,625,585 . At this time, Twin Disc's Gross Profit is very 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 Twin Disc's earnings, one of the primary drivers of an investment's value.Twin Return On Equity 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.
Twin Disc |
| = | 74.33 M |
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.
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.
Twin Disc |
| = | 0.0641 |
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.
Twin Return On Equity Comparison
Twin Disc is currently under evaluation in return on equity category among its peers.
Twin Disc Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Twin Disc, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Twin Disc will eventually generate negative long term returns. The profitability progress is the general direction of Twin Disc's change in net profit over the period of time. It can combine multiple indicators of Twin Disc, 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 | -6.9 M | -7.3 M | |
| Operating Income | 11.5 M | 11.4 M | |
| Income Before Tax | 15.4 M | 16.1 M | |
| Total Other Income Expense Net | 3.9 M | 4.1 M | |
| Net Income | 11 M | 11.5 M | |
| Income Tax Expense | 4.1 M | 4.2 M | |
| Net Income Applicable To Common Shares | 9.3 M | 9.8 M | |
| Net Income From Continuing Ops | 11.2 M | 11.8 M | |
| Interest Income | 70.2 K | 114.1 K | |
| Net Interest Income | -1.4 M | -1.5 M | |
| Change To Netincome | -1.1 M | -1.1 M | |
| Net Income Per Share | 0.80 | 0.42 | |
| Income Quality | 3.07 | 3.36 | |
| Net Income Per E B T | 0.72 | 0.43 |
Twin Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Twin Disc. 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 Twin Disc 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 Twin Disc's important profitability drivers and their relationship over time.
Use Twin Disc 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 Twin Disc 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 Twin Disc will appreciate offsetting losses from the drop in the long position's value.Twin Disc Pair Trading
Twin Disc Incorporated Pair Trading Analysis
The ability to find closely correlated positions to Twin Disc could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Twin Disc 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 Twin Disc - 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 Twin Disc Incorporated to buy it.
The correlation of Twin Disc 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 Twin Disc moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Twin Disc 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 Twin Disc 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 Twin Disc position
In addition to having Twin Disc 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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Check out World Market Map. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
To fully project Twin Disc's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Twin Disc 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 Twin Disc's income statement, its balance sheet, and the statement of cash flows.