Hiwin Mikrosystem Operating Margin vs. Return On Equity

4576 Stock  TWD 129.00  4.50  3.37%   
Taking into consideration Hiwin Mikrosystem's profitability measurements, Hiwin Mikrosystem Corp may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in April. Profitability indicators assess Hiwin Mikrosystem's ability to earn profits and add value for shareholders.
For Hiwin Mikrosystem profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hiwin Mikrosystem to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hiwin Mikrosystem Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hiwin Mikrosystem's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hiwin Mikrosystem 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 Hiwin Mikrosystem's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hiwin Mikrosystem is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hiwin Mikrosystem'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.

Hiwin Mikrosystem Corp Return On Equity vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hiwin Mikrosystem's current stock value. Our valuation model uses many indicators to compare Hiwin Mikrosystem value to that of its competitors to determine the firm's financial worth.
Hiwin Mikrosystem Corp is number one stock in operating margin category among its peers. It also is number one stock in return on equity category among its peers reporting about  0.83  of Return On Equity per Operating Margin. The ratio of Operating Margin to Return On Equity for Hiwin Mikrosystem Corp is roughly  1.20 . 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 Hiwin Mikrosystem's earnings, one of the primary drivers of an investment's value.

Hiwin Return On Equity 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.

Hiwin Mikrosystem

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.13 %
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.
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.

Hiwin Mikrosystem

Return On Equity

 = 

Net Income

Total Equity

 = 
0.11
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.

Hiwin Return On Equity Comparison

Hiwin Mikrosystem is currently under evaluation in return on equity category among its peers.

Hiwin Mikrosystem Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hiwin Mikrosystem, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hiwin Mikrosystem will eventually generate negative long term returns. The profitability progress is the general direction of Hiwin Mikrosystem's change in net profit over the period of time. It can combine multiple indicators of Hiwin Mikrosystem, 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.
Hiwin Mikrosystem Corp. researches, develops, manufactures, and sells components, systems, and equipment for linear motion and control system in Taiwan. Hiwin Mikrosystem Corp. was founded in 1997 and is headquartered in Taichung, Taiwan. HIWIN MIKROSYSTEM operates under Electrical Equipment Parts classification in Taiwan and is traded on Taiwan Stock Exchange.

Hiwin Profitability Driver Comparison

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

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Additional Tools for Hiwin Stock Analysis

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