Wacker Chemie Return On Equity vs. Revenue
| WKCMF Stock | USD 72.28 3.51 4.63% |
For Wacker Chemie profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Wacker Chemie to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Wacker Chemie AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Wacker Chemie's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Wacker Chemie AG over time as well as its relative position and ranking within its peers.
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Wacker Chemie AG Revenue vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Wacker Chemie's current stock value. Our valuation model uses many indicators to compare Wacker Chemie value to that of its competitors to determine the firm's financial worth. Wacker Chemie AG is rated first in return on equity category among its peers. It is rated first in revenue category among its peers totaling about 17,011,510,003 of Revenue 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 Wacker Chemie's earnings, one of the primary drivers of an investment's value.Wacker Revenue 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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| = | 0.36 |
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.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Wacker Chemie |
| = | 6.21 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Wacker Revenue vs Competition
Wacker Chemie AG is rated first in revenue category among its peers. Market size based on revenue of Specialty Chemicals industry is at this time estimated at about 104.18 Billion. Wacker Chemie holds roughly 6.21 Billion in revenue claiming about 6% of equities listed under Specialty Chemicals industry.
Wacker Chemie Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Wacker Chemie, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Wacker Chemie will eventually generate negative long term returns. The profitability progress is the general direction of Wacker Chemie's change in net profit over the period of time. It can combine multiple indicators of Wacker Chemie, 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.
Wacker Chemie AG, together with its subsidiaries, provides chemical products worldwide. The company was founded in 1914 and is headquartered in Munich, Germany. Wacker Chemie operates under Specialty Chemicals classification in the United States and is traded on OTC Exchange. It employs 15250 people.
Wacker Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Wacker Chemie. 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 Wacker Chemie 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 Wacker Chemie's important profitability drivers and their relationship over time.
Use Wacker Chemie 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 Wacker Chemie 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 Wacker Chemie will appreciate offsetting losses from the drop in the long position's value.Wacker Chemie Pair Trading
Wacker Chemie AG Pair Trading Analysis
The ability to find closely correlated positions to Wacker Chemie could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Wacker Chemie 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 Wacker Chemie - 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 Wacker Chemie AG to buy it.
The correlation of Wacker Chemie 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 Wacker Chemie moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Wacker Chemie AG 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 Wacker Chemie 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 Wacker Chemie position
In addition to having Wacker Chemie 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 Wacker Pink Sheet
To fully project Wacker Chemie's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Wacker Chemie AG 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 Wacker Chemie's income statement, its balance sheet, and the statement of cash flows.