Advanced Drainage Price To Sales vs. Return On Equity
| 6DA Stock | EUR 110.60 0.60 0.55% |
For Advanced Drainage profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Advanced Drainage to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Advanced Drainage Systems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Advanced Drainage's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Advanced Drainage Systems over time as well as its relative position and ranking within its peers.
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Advanced Drainage Systems Return On Equity vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Advanced Drainage's current stock value. Our valuation model uses many indicators to compare Advanced Drainage value to that of its competitors to determine the firm's financial worth. Advanced Drainage Systems is rated second in price to sales category among its peers. It also is rated second in return on equity category among its peers reporting about 0.22 of Return On Equity per Price To Sales. The ratio of Price To Sales to Return On Equity for Advanced Drainage Systems is roughly 4.50 . 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 Advanced Drainage's earnings, one of the primary drivers of an investment's value.Advanced Return On Equity 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.
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| = | 2.14 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.
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.
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| = | 0.48 |
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.
Advanced Return On Equity Comparison
Advanced Drainage is number one stock in return on equity category among its peers.
Advanced Drainage Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Advanced Drainage, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Advanced Drainage will eventually generate negative long term returns. The profitability progress is the general direction of Advanced Drainage's change in net profit over the period of time. It can combine multiple indicators of Advanced Drainage, 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.
Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products, and drainage solutions for use in the underground construction and infrastructure marketplace in the United States and internationally. Advanced Drainage Systems, Inc. was founded in 1966 and is headquartered in Hilliard, Ohio. Advanced Drainage operates under Rubber Plastics classification in Germany and is traded on Frankfurt Stock Exchange. It employs 4400 people.
Advanced Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Advanced Drainage. 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 Advanced Drainage 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 Advanced Drainage's important profitability drivers and their relationship over time.
Use Advanced Drainage 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 Advanced Drainage 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 Advanced Drainage will appreciate offsetting losses from the drop in the long position's value.Advanced Drainage Pair Trading
Advanced Drainage Systems Pair Trading Analysis
The ability to find closely correlated positions to Advanced Drainage could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Advanced Drainage 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 Advanced Drainage - 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 Advanced Drainage Systems to buy it.
The correlation of Advanced Drainage 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 Advanced Drainage moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Advanced Drainage Systems 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 Advanced Drainage 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.Use Investing Themes to Complement your Advanced Drainage position
In addition to having Advanced Drainage 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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Energy Funds
Funds or Etfs investing in energy sector, natural resources, and ecology. The Energy Funds theme has 47 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 Energy Funds Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Advanced Stock
When determining whether Advanced Drainage Systems is a strong investment it is important to analyze Advanced Drainage'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 Advanced Drainage's future performance. For an informed investment choice regarding Advanced Stock, refer to the following important reports:Check out Trending Equities. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
To fully project Advanced Drainage's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Advanced Drainage Systems 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 Advanced Drainage's income statement, its balance sheet, and the statement of cash flows.