Alfa SAB Return On Equity vs. Return On Asset
| ALFAA Stock | MXN 16.68 0.03 0.18% |
For Alfa SAB profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alfa SAB to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alfa SAB de utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alfa SAB's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alfa SAB de over time as well as its relative position and ranking within its peers.
Alfa |
Alfa SAB de Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Alfa SAB's current stock value. Our valuation model uses many indicators to compare Alfa SAB value to that of its competitors to determine the firm's financial worth. Alfa SAB de is number one stock in return on equity category among its peers. It also is number one stock in return on asset category among its peers reporting about 0.37 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Alfa SAB de is roughly 2.70 . 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 Alfa SAB's earnings, one of the primary drivers of an investment's value.Alfa Return On Asset 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.
Alfa SAB |
| = | 0.21 |
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.
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.
Alfa SAB |
| = | 0.0788 |
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.
Alfa Return On Asset Comparison
Alfa SAB is currently under evaluation in return on asset category among its peers.
Alfa SAB Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Alfa SAB, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Alfa SAB will eventually generate negative long term returns. The profitability progress is the general direction of Alfa SAB's change in net profit over the period of time. It can combine multiple indicators of Alfa SAB, 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.
Alfa, S.A.B. de C.V. engages in the petrochemicals and synthetic fibers, refrigerated foods, telecommunications, and natural gas and hydrocarbons businesses in Mexico, the United States, Canada, Central America, Europe, and internationally. Alfa, S.A.B. de C.V. was incorporated in 1974 and is based in San Pedro Garza Garca, Mexico. ALFA S operates under Conglomerates classification in Mexico and is traded on Mexico Stock Exchange. It employs 56899 people.
Alfa Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Alfa SAB. 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 Alfa SAB 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 Alfa SAB's important profitability drivers and their relationship over time.
Use Alfa SAB 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 Alfa SAB 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 Alfa SAB will appreciate offsetting losses from the drop in the long position's value.Alfa SAB Pair Trading
Alfa SAB de Pair Trading Analysis
The ability to find closely correlated positions to Alfa SAB could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alfa SAB 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 Alfa SAB - 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 Alfa SAB de to buy it.
The correlation of Alfa SAB 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 Alfa SAB moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alfa SAB de 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 Alfa SAB 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 Alfa SAB position
In addition to having Alfa SAB 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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Housewares
Companies making housewares accessories and providing houseware services. The Housewares theme has 48 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 Housewares Theme or any other thematic opportunities.
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Other Information on Investing in Alfa Stock
To fully project Alfa SAB's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Alfa SAB de 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 Alfa SAB's income statement, its balance sheet, and the statement of cash flows.