Taking into consideration VersaBank's profitability measurements, VersaBank may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess VersaBank's ability to earn profits and add value for shareholders.
For VersaBank profitability analysis, we use financial ratios and fundamental drivers that measure the ability of VersaBank to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well VersaBank utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between VersaBank's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of VersaBank over time as well as its relative position and ranking within its peers.
Please note, there is a significant difference between VersaBank's value and its price as these two are different measures arrived at by different means. Investors typically determine if VersaBank is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, VersaBank'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.
VersaBank Number Of Shares Shorted vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining VersaBank's current stock value. Our valuation model uses many indicators to compare VersaBank value to that of its competitors to determine the firm's financial worth.
VersaBank is rated first in operating margin category among its peers. It is rated second in number of shares shorted category among its peers making about 55,968 of Number Of Shares Shorted per Operating Margin. At this time, VersaBank's Operating Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value VersaBank by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for VersaBank'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.
VersaBank Number Of Shares Shorted vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
VersaBank
Operating Margin
=
Operating Income
Revenue
X
100
=
0.50 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.
VersaBank
Shares Shorted
=
Shorted by Public
+
by Institutions
=
27.91 K
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.
VersaBank Number Of Shares Shorted Comparison
VersaBank is currently under evaluation in number of shares shorted category among its peers.
VersaBank Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in VersaBank, profitability is also one of the essential criteria for including it into their portfolios because, without profit, VersaBank will eventually generate negative long term returns. The profitability progress is the general direction of VersaBank's change in net profit over the period of time. It can combine multiple indicators of VersaBank, 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.
Profitability drivers are factors that can directly affect your investment outlook on VersaBank. 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 VersaBank 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 VersaBank's important profitability drivers and their relationship over time.
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 VersaBank 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 VersaBank will appreciate offsetting losses from the drop in the long position's value.
VersaBank Pair Trading
VersaBank Pair Trading Analysis
The ability to find closely correlated positions to VersaBank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace VersaBank 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 VersaBank - 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 VersaBank to buy it.
The correlation of VersaBank 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 VersaBank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if VersaBank 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 VersaBank 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 VersaBank position
In addition to having VersaBank 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.
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SPAC
Entities that are involved in raising capital, merging with and acquiring companies, and investing in private equity through leveraged buyouts. The SPAC 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 SPAC Theme or any other thematic opportunities.
When determining whether VersaBank is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if VersaBank Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Versabank Stock. Highlighted below are key reports to facilitate an investment decision about Versabank Stock:
To learn how to invest in VersaBank Stock, please use our How to Invest in VersaBank guide.You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
To fully project VersaBank's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of VersaBank 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 VersaBank's income statement, its balance sheet, and the statement of cash flows.
Potential VersaBank investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although VersaBank investors may work on each financial statement separately, they are all related. The changes in VersaBank's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on VersaBank'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.
