Datalogic Return On Equity vs. Operating Margin

0E3C Stock   5.21  0.11  2.16%   
Based on the measurements of profitability obtained from Datalogic's financial statements, Datalogic may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Datalogic's ability to earn profits and add value for shareholders.
For Datalogic profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Datalogic to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Datalogic utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Datalogic's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Datalogic over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Datalogic's value and its price as these two are different measures arrived at by different means. Investors typically determine if Datalogic is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Datalogic'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.

Datalogic Operating Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Datalogic's current stock value. Our valuation model uses many indicators to compare Datalogic value to that of its competitors to determine the firm's financial worth.
Datalogic is number one stock in return on equity category among its peers. It is rated second in operating margin category among its peers reporting about  0.73  of Operating Margin per Return On Equity. The ratio of Return On Equity to Operating Margin for Datalogic is roughly  1.37 . 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 Datalogic's earnings, one of the primary drivers of an investment's value.

Datalogic Operating 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.

Datalogic

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0335
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.
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.

Datalogic

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.02 %
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.

Datalogic Operating Margin Comparison

Datalogic is currently under evaluation in operating margin category among its peers.

Datalogic Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Datalogic, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Datalogic will eventually generate negative long term returns. The profitability progress is the general direction of Datalogic's change in net profit over the period of time. It can combine multiple indicators of Datalogic, 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.
Last ReportedProjected for Next Year
Interest Income6.4 M4.1 M
Operating Income16.6 M15.7 M
Income Before Tax10.8 M10.2 M
Net Income Applicable To Common Shares27.1 M34.4 M
Net Income27.1 M38.6 M
Income Tax Expense3.7 M5.5 M
Change To Netincome777.4 K816.3 K

Datalogic Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Datalogic. 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 Datalogic 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 Datalogic's important profitability drivers and their relationship over time.

Use Datalogic 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 Datalogic 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 Datalogic will appreciate offsetting losses from the drop in the long position's value.

Datalogic Pair Trading

Datalogic Pair Trading Analysis

The ability to find closely correlated positions to Datalogic could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Datalogic 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 Datalogic - 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 Datalogic to buy it.
The correlation of Datalogic 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 Datalogic moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Datalogic 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 Datalogic 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Datalogic position

In addition to having Datalogic 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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Video Games
Video Games Theme
Companies that are involved in the building and marketing of video games or gaming software. The Video Games theme has 24 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 Video Games Theme or any other thematic opportunities.
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Additional Tools for Datalogic Stock Analysis

When running Datalogic's price analysis, check to measure Datalogic'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 Datalogic is operating at the current time. Most of Datalogic's value examination focuses on studying past and present price action to predict the probability of Datalogic's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Datalogic's price. Additionally, you may evaluate how the addition of Datalogic to your portfolios can decrease your overall portfolio volatility.