Allied Machinery Price To Sales vs. Net Income

605060 Stock   16.56  0.28  1.72%   
Based on the key profitability measurements obtained from Allied Machinery's financial statements, Allied Machinery Co 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 Allied Machinery's ability to earn profits and add value for shareholders.
For Allied Machinery profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Allied Machinery to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Allied Machinery Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Allied Machinery's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Allied Machinery Co 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 Allied Machinery's value and its price as these two are different measures arrived at by different means. Investors typically determine if Allied Machinery is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Allied Machinery'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.

Allied Machinery Net Income vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Allied Machinery's current stock value. Our valuation model uses many indicators to compare Allied Machinery value to that of its competitors to determine the firm's financial worth.
Allied Machinery Co is number one stock in price to sales category among its peers. It also is number one stock in net income category among its peers making up about  70,530,730  of Net Income per Price To Sales. At present, Allied Machinery's Net Income is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value Allied Machinery by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Allied Machinery's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Allied Net Income vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Allied Machinery

P/S

 = 

MV Per Share

Revenue Per Share

 = 
3.56 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Allied Machinery

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
251.34 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Allied Net Income Comparison

Allied Machinery is currently under evaluation in net income category among its peers.

Allied Machinery Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Allied Machinery, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Allied Machinery will eventually generate negative long term returns. The profitability progress is the general direction of Allied Machinery's change in net profit over the period of time. It can combine multiple indicators of Allied Machinery, 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
Operating Income293.8 M211.8 M
Income Before Tax288.9 M212.3 M
Total Other Income Expense Net5.5 M5.7 M
Net Income251.3 M195.8 M
Income Tax Expense42.2 M27.4 M
Net Interest Income11 M11.6 M
Interest Income14.8 M15.5 M
Net Income From Continuing Ops249.4 M218.1 M

Allied Profitability Driver Comparison

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

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

Allied Machinery Pair Trading

Allied Machinery Co Pair Trading Analysis

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

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Other Information on Investing in Allied Stock

To fully project Allied Machinery's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Allied Machinery 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 Allied Machinery's income statement, its balance sheet, and the statement of cash flows.
Potential Allied Machinery investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Allied Machinery investors may work on each financial statement separately, they are all related. The changes in Allied Machinery's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Allied Machinery'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.