Absa Profit Margin vs. Earnings Per Share
| ABG Stock | 19,678 51.00 0.26% |
For Absa profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Absa to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Absa Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Absa's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Absa Group over time as well as its relative position and ranking within its peers.
Absa |
Absa Group Earnings Per Share vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Absa's current stock value. Our valuation model uses many indicators to compare Absa value to that of its competitors to determine the firm's financial worth. Absa Group is number one stock in profit margin category among its peers. It also is number one stock in earnings per share category among its peers creating about 99.42 of Earnings Per Share per Profit Margin. 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 Absa's earnings, one of the primary drivers of an investment's value.Absa Earnings Per Share vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Absa |
| = | 0.24 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
Absa |
| = | 24.15 X |
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.
Absa Earnings Per Share Comparison
Absa is currently under evaluation in earnings per share category among its peers.
Absa Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Absa. 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 Absa 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 Absa's important profitability drivers and their relationship over time.
Use Absa 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 Absa 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 Absa will appreciate offsetting losses from the drop in the long position's value.Absa Pair Trading
Absa Group Pair Trading Analysis
The ability to find closely correlated positions to Absa could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Absa 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 Absa - 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 Absa Group to buy it.
The correlation of Absa 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 Absa moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Absa Group 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 Absa 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 Absa position
In addition to having Absa 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?
Run Global Macro ETFs Thematic Idea Now
Global Macro ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Global Macro ETFs theme has 26 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 Global Macro ETFs Theme or any other thematic opportunities.
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Other Information on Investing in Absa Stock
To fully project Absa's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Absa Group 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 Absa's income statement, its balance sheet, and the statement of cash flows.