Select Energy Current Valuation vs. Return On Asset

18RA Stock  EUR 13.16  0.45  3.31%   
Based on the key profitability measurements obtained from Select Energy's financial statements, Select Energy Services may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Select Energy's ability to earn profits and add value for shareholders.
For Select Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Select Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Select Energy Services utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Select Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Select Energy Services 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 Select Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Select Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Select Energy'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.

Select Energy Services Return On Asset vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Select Energy's current stock value. Our valuation model uses many indicators to compare Select Energy value to that of its competitors to determine the firm's financial worth.
Select Energy Services is rated fourth in current valuation category among its peers. It is number one stock in return on asset category among its peers . The ratio of Current Valuation to Return On Asset for Select Energy Services is about  34,325,019,964 . 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 Select Energy's earnings, one of the primary drivers of an investment's value.

Select Current Valuation vs. Competition

Select Energy Services is rated fourth in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Pollution & Treatment Controls industry is presently estimated at about 19.3 Billion. Select Energy holds roughly 954.24 Million in current valuation claiming about 5% of equities listed under Pollution & Treatment Controls industry.

Select Return On Asset vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Select Energy

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
954.24 M
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Select Energy

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0278
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Select Return On Asset Comparison

Select Energy is currently under evaluation in return on asset category among its peers.

Select Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Select Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Select Energy will eventually generate negative long term returns. The profitability progress is the general direction of Select Energy's change in net profit over the period of time. It can combine multiple indicators of Select Energy, 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.
Select Energy Services, Inc., an oilfield services company, provides water management and chemical solutions to the onshore oil and natural gas industry in the United States and Western Canada. Select Energy Services, Inc. was founded in 2016 and is headquartered in Houston, Texas. SELECT ENER operates under Pollution Treatment Controls classification in Germany and is traded on Frankfurt Stock Exchange. It employs 5300 people.

Select Profitability Driver Comparison

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

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

Select Energy Pair Trading

Select Energy Services Pair Trading Analysis

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

In addition to having Select Energy 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 Investing Thematic Idea Now

Investing
Investing Theme
Companies involved in money management and investment banking services. The Investing theme has 44 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 Investing Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Select Stock

When determining whether Select Energy Services is a strong investment it is important to analyze Select Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Select Energy's future performance. For an informed investment choice regarding Select Stock, refer to the following important reports:
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You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
To fully project Select Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Select Energy Services 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 Select Energy's income statement, its balance sheet, and the statement of cash flows.
Potential Select Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Select Energy investors may work on each financial statement separately, they are all related. The changes in Select Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Select Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.