Formosa Optical Technology Stock Return On Equity
| 5312 Stock | TWD 108.50 0.50 0.46% |
Formosa Optical Technology fundamentals help investors to digest information that contributes to Formosa Optical's financial success or failures. It also enables traders to predict the movement of Formosa Stock. The fundamental analysis module provides a way to measure Formosa Optical's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Formosa Optical stock.
Formosa |
Formosa Optical Technology Company Return On Equity Analysis
Formosa Optical's 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.
Current Formosa Optical Return On Equity | 0.1 |
Most of Formosa Optical's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Formosa Optical Technology is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
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.
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Based on the latest financial disclosure, Formosa Optical Technology has a Return On Equity of 0.1021. This is much higher than that of the Specialty Retail sector and significantly higher than that of the Consumer Discretionary industry. The return on equity for all Taiwan stocks is notably lower than that of the firm.
Formosa Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Formosa Optical's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Formosa Optical could also be used in its relative valuation, which is a method of valuing Formosa Optical by comparing valuation metrics of similar companies.Formosa Optical is currently under evaluation in return on equity category among its peers.
Formosa Fundamentals
| Return On Equity | 0.1 | |||
| Return On Asset | 0.0239 | |||
| Profit Margin | 0.08 % | |||
| Operating Margin | 0.07 % | |||
| Current Valuation | 3.28 B | |||
| Shares Outstanding | 60.06 M | |||
| Shares Owned By Insiders | 46.51 % | |||
| Shares Owned By Institutions | 9.51 % | |||
| Price To Book | 1.36 X | |||
| Price To Sales | 1.04 X | |||
| Revenue | 2.91 B | |||
| Gross Profit | 1.75 B | |||
| EBITDA | 819 M | |||
| Net Income | 289.9 M | |||
| Total Debt | 423.85 M | |||
| Book Value Per Share | 42.30 X | |||
| Cash Flow From Operations | 677.86 M | |||
| Earnings Per Share | 4.28 X | |||
| Number Of Employees | 17 | |||
| Beta | 0.18 | |||
| Market Capitalization | 3.7 B | |||
| Total Asset | 5.73 B | |||
| Z Score | 4.8 | |||
| Annual Yield | 0.07 % | |||
| Net Asset | 5.73 B | |||
| Last Dividend Paid | 4.3 |
About Formosa Optical Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Formosa Optical Technology's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Formosa Optical using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Formosa Optical Technology based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Formosa Optical
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 Formosa Optical 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 Formosa Optical will appreciate offsetting losses from the drop in the long position's value.Moving against Formosa Stock
| 0.91 | 3206 | Kingstate Electronics | PairCorr |
| 0.8 | 4108 | Phytohealth Corp | PairCorr |
| 0.74 | 3556 | eGalaxeMPIA Technology | PairCorr |
| 0.71 | 5215 | Ko Ja Cayman | PairCorr |
| 0.51 | 4702 | Allied Industrial | PairCorr |
The ability to find closely correlated positions to Formosa Optical could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Formosa Optical 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 Formosa Optical - 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 Formosa Optical Technology to buy it.
The correlation of Formosa Optical 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 Formosa Optical moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Formosa Optical Tech 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 Formosa Optical 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.Additional Tools for Formosa Stock Analysis
When running Formosa Optical's price analysis, check to measure Formosa Optical's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Formosa Optical is operating at the current time. Most of Formosa Optical's value examination focuses on studying past and present price action to predict the probability of Formosa Optical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Formosa Optical's price. Additionally, you may evaluate how the addition of Formosa Optical to your portfolios can decrease your overall portfolio volatility.