Valmet Oyj Return On Equity vs. Profit Margin
| VALMT Stock | EUR 21.75 0.13 0.60% |
For Valmet Oyj profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Valmet Oyj to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Valmet Oyj utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Valmet Oyj's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Valmet Oyj over time as well as its relative position and ranking within its peers.
Valmet |
Valmet Oyj Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Valmet Oyj's current stock value. Our valuation model uses many indicators to compare Valmet Oyj value to that of its competitors to determine the firm's financial worth. Valmet Oyj is rated first in return on equity category among its peers. It is rated first in profit margin category among its peers fabricating about 0.38 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Valmet Oyj is roughly 2.65 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Valmet Oyj by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Valmet Oyj's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Valmet Profit Margin 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.
Valmet Oyj |
| = | 0.18 |
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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Valmet Oyj |
| = | 0.07 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Valmet Profit Margin Comparison
Valmet Oyj is currently under evaluation in profit margin category among its peers.
Valmet Oyj Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Valmet Oyj, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Valmet Oyj will eventually generate negative long term returns. The profitability progress is the general direction of Valmet Oyj's change in net profit over the period of time. It can combine multiple indicators of Valmet Oyj, 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.
Valmet Oyj, together with its subsidiaries, develops and supplies process technologies, automation, and services for the pulp, paper, and energy industries in Finland, North America, South America, Europe, the Middle East, Africa, China, and the Asia-Pacific. The company also serves paper converting, food and biotechnology, and pharmaceuticals industries, as well as commercial laundries. Valmet operates under Diversified Industrials classification in Finland and is traded on Helsinki Exchange. It employs 13622 people.
Valmet Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Valmet Oyj. 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 Valmet Oyj 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 Valmet Oyj's important profitability drivers and their relationship over time.
Use Valmet Oyj 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 Valmet Oyj 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 Valmet Oyj will appreciate offsetting losses from the drop in the long position's value.Valmet Oyj Pair Trading
Valmet Oyj Pair Trading Analysis
The ability to find closely correlated positions to Valmet Oyj could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Valmet Oyj 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 Valmet Oyj - 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 Valmet Oyj to buy it.
The correlation of Valmet Oyj 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 Valmet Oyj moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Valmet Oyj 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 Valmet Oyj 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 Valmet Oyj position
In addition to having Valmet Oyj 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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Other Information on Investing in Valmet Stock
To fully project Valmet Oyj's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Valmet Oyj 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 Valmet Oyj's income statement, its balance sheet, and the statement of cash flows.