STELLA JONES Return On Equity vs. Cash And Equivalents
| 97S Stock | EUR 47.20 0.40 0.85% |
For STELLA JONES profitability analysis, we use financial ratios and fundamental drivers that measure the ability of STELLA JONES to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well STELLA JONES INC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between STELLA JONES's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of STELLA JONES INC over time as well as its relative position and ranking within its peers.
STELLA |
STELLA JONES INC Cash And Equivalents vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining STELLA JONES's current stock value. Our valuation model uses many indicators to compare STELLA JONES value to that of its competitors to determine the firm's financial worth. STELLA JONES INC is rated below average in return on equity category among its peers. It is rated below average in cash and equivalents category among its peers creating about 33,804,714 of Cash And Equivalents per Return On Equity. 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 STELLA JONES's earnings, one of the primary drivers of an investment's value.STELLA Cash And Equivalents vs. Return On Equity
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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| = | 0.15 |
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.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
STELLA JONES |
| = | 5.02 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
STELLA Cash And Equivalents Comparison
STELLA JONES is rated below average in cash and equivalents category among its peers.
STELLA JONES Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in STELLA JONES, profitability is also one of the essential criteria for including it into their portfolios because, without profit, STELLA JONES will eventually generate negative long term returns. The profitability progress is the general direction of STELLA JONES's change in net profit over the period of time. It can combine multiple indicators of STELLA JONES, 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.
Stella-Jones Inc. produces and markets pressure-treated wood products in Canada and the United States. The company was incorporation in 1992 and is based in Saint-Laurent, Canada. STELLA JONES operates under Lumber Wood Production classification in Germany and is traded on Frankfurt Stock Exchange. It employs 2340 people.
STELLA Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on STELLA JONES. 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 STELLA JONES 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 STELLA JONES's important profitability drivers and their relationship over time.
Use STELLA JONES 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 STELLA JONES 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 STELLA JONES will appreciate offsetting losses from the drop in the long position's value.STELLA JONES Pair Trading
STELLA JONES INC Pair Trading Analysis
The ability to find closely correlated positions to STELLA JONES could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace STELLA JONES 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 STELLA JONES - 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 STELLA JONES INC to buy it.
The correlation of STELLA JONES 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 STELLA JONES moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if STELLA JONES INC 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 STELLA JONES 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 STELLA JONES position
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Other Information on Investing in STELLA Stock
To fully project STELLA JONES's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of STELLA JONES INC 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 STELLA JONES's income statement, its balance sheet, and the statement of cash flows.