Scandinavian Tobacco Price To Earning vs. Return On Asset

8ZI Stock  EUR 12.92  0.40  3.19%   
Considering Scandinavian Tobacco's profitability and operating efficiency indicators, Scandinavian Tobacco Group 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 Scandinavian Tobacco's ability to earn profits and add value for shareholders.
For Scandinavian Tobacco profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Scandinavian Tobacco to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Scandinavian Tobacco Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Scandinavian Tobacco's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Scandinavian Tobacco Group 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 Scandinavian Tobacco's value and its price as these two are different measures arrived at by different means. Investors typically determine if Scandinavian Tobacco is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Scandinavian Tobacco'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.

Scandinavian Tobacco Return On Asset vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Scandinavian Tobacco's current stock value. Our valuation model uses many indicators to compare Scandinavian Tobacco value to that of its competitors to determine the firm's financial worth.
Scandinavian Tobacco Group is rated third in price to earning category among its peers. It is number one stock in return on asset category among its peers reporting about  0.01  of Return On Asset per Price To Earning. The ratio of Price To Earning to Return On Asset for Scandinavian Tobacco Group is roughly  108.34 . 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 Scandinavian Tobacco's earnings, one of the primary drivers of an investment's value.

Scandinavian Return On Asset vs. Price To Earning

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.

Scandinavian Tobacco

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
8.05 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.
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.

Scandinavian Tobacco

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0743
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.

Scandinavian Return On Asset Comparison

Scandinavian Tobacco is currently under evaluation in return on asset category among its peers.

Scandinavian Tobacco Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Scandinavian Tobacco, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Scandinavian Tobacco will eventually generate negative long term returns. The profitability progress is the general direction of Scandinavian Tobacco's change in net profit over the period of time. It can combine multiple indicators of Scandinavian Tobacco, 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.
Scandinavian Tobacco Group AS manufactures and sells handmade and machine-made cigars, and pipe tobacco worldwide. The company was founded in 1750 and is headquartered in Sborg, Denmark. SCAND TOBACCO is traded on Frankfurt Stock Exchange in Germany.

Scandinavian Profitability Driver Comparison

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

Use Scandinavian Tobacco 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 Scandinavian Tobacco 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 Scandinavian Tobacco will appreciate offsetting losses from the drop in the long position's value.

Scandinavian Tobacco Pair Trading

Scandinavian Tobacco Group Pair Trading Analysis

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

In addition to having Scandinavian Tobacco 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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Other Information on Investing in Scandinavian Stock

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