Xp Return On Equity vs. Profit Margin
| XPBR31 Stock | 92.21 0.29 0.32% |
For Xp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Xp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Xp Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Xp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Xp Inc over time as well as its relative position and ranking within its peers.
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Xp Inc Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Xp's current stock value. Our valuation model uses many indicators to compare Xp value to that of its competitors to determine the firm's financial worth. Xp Inc is rated first in return on equity category among its peers. It is rated first in profit margin category among its peers fabricating about 1.18 of Profit Margin per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Xp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Xp'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.Xp 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.
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| = | 0.25 |
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.
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| = | 0.29 % |
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.
Xp Profit Margin Comparison
Xp is currently under evaluation in profit margin category among its peers.
Xp Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Xp. 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 Xp 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 Xp's important profitability drivers and their relationship over time.
Use Xp 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 Xp 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 Xp will appreciate offsetting losses from the drop in the long position's value.Xp Pair Trading
Xp Inc Pair Trading Analysis
The ability to find closely correlated positions to Xp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Xp 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 Xp - 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 Xp Inc to buy it.
The correlation of Xp 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 Xp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Xp Inc 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 Xp 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 Xp position
In addition to having Xp 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?
Run Consumption Thematic Idea Now
Consumption
Companies that deliver final goods such as cars or clothing for consumption by consumers. The Consumption theme has 19 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 Consumption Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Xp Stock
When determining whether Xp Inc 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 Xp 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 Xp Inc Stock. Highlighted below are key reports to facilitate an investment decision about Xp Inc Stock:Check out Your Current Watchlist. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
To fully project Xp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Xp Inc 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 Xp's income statement, its balance sheet, and the statement of cash flows.