Inventec Corp Operating Margin vs. Price To Earning

2356 Stock  TWD 50.60  0.60  1.20%   
Considering Inventec Corp's profitability and operating efficiency indicators, Inventec Corp 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 Inventec Corp's ability to earn profits and add value for shareholders.
For Inventec Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Inventec Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Inventec Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Inventec Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Inventec Corp 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 Inventec Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Inventec Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Inventec Corp'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.

Inventec Corp Price To Earning vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Inventec Corp's current stock value. Our valuation model uses many indicators to compare Inventec Corp value to that of its competitors to determine the firm's financial worth.
Inventec Corp is number one stock in operating margin category among its peers. It also is number one stock in price to earning category among its peers reporting about  1,107  of Price To Earning per Operating Margin. 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 Inventec Corp's earnings, one of the primary drivers of an investment's value.

Inventec Price To Earning vs. Operating Margin

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.

Inventec Corp

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.01 %
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.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Inventec Corp

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
12.29 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Inventec Price To Earning Comparison

Inventec Corp is currently under evaluation in price to earning category among its peers.

Inventec Corp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Inventec Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Inventec Corp will eventually generate negative long term returns. The profitability progress is the general direction of Inventec Corp's change in net profit over the period of time. It can combine multiple indicators of Inventec Corp, 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.
Inventec Corporation, together with its subsidiaries, engages in developing, manufacturing, processing, and trading of computers and related products. Inventec Corporation was founded in 1975 and is headquartered in Taipei City, Taiwan. INVENTEC CORP operates under Computer Systems classification in Taiwan and is traded on Taiwan Stock Exchange.

Inventec Profitability Driver Comparison

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

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

Inventec Corp Pair Trading

Inventec Corp Pair Trading Analysis

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

In addition to having Inventec Corp 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.

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Additional Tools for Inventec Stock Analysis

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