Weir Return On Equity vs. Net Income
| WEIGF Stock | USD 27.05 0.00 0.00% |
For Weir profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Weir to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well The Weir Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Weir's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of The Weir Group over time as well as its relative position and ranking within its peers.
Weir |
Weir Group Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Weir's current stock value. Our valuation model uses many indicators to compare Weir value to that of its competitors to determine the firm's financial worth. The Weir Group is rated first in return on equity category among its peers. It is rated fifth in net income category among its peers making up about 2,289,636,847 of Net Income 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 Weir's earnings, one of the primary drivers of an investment's value.Weir Net Income 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.
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| = | 0.11 |
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.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
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| = | 258.5 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Weir Net Income Comparison
Weir is currently under evaluation in net income category among its peers.
Weir Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Weir, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Weir will eventually generate negative long term returns. The profitability progress is the general direction of Weir's change in net profit over the period of time. It can combine multiple indicators of Weir, 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.
The Weir Group PLC produces and sells highly engineered original equipment worldwide. The company was founded in 1871 and is headquartered in Glasgow, the United Kingdom. Weir Group operates under Specialty Industrial Machinery classification in the United States and is traded on OTC Exchange. It employs 11994 people.
Weir Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Weir. 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 Weir 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 Weir's important profitability drivers and their relationship over time.
Use Weir 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 Weir 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 Weir will appreciate offsetting losses from the drop in the long position's value.Weir Pair Trading
The Weir Group Pair Trading Analysis
The ability to find closely correlated positions to Weir could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Weir 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 Weir - 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 The Weir Group to buy it.
The correlation of Weir 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 Weir moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Weir Group 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 Weir 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 Weir position
In addition to having Weir 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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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 Realty Funds Theme or any other thematic opportunities.
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Other Information on Investing in Weir Pink Sheet
To fully project Weir's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Weir Group 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 Weir's income statement, its balance sheet, and the statement of cash flows.