Alkali Metals Book Value Per Share vs. Net Income

ALKALI Stock   116.81  1.30  1.10%   
Based on Alkali Metals' profitability indicators, Alkali Metals Limited may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Alkali Metals' ability to earn profits and add value for shareholders.
For Alkali Metals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alkali Metals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alkali Metals Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alkali Metals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alkali Metals Limited 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 Alkali Metals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Alkali Metals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alkali Metals' 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.

Alkali Metals Limited Net Income vs. Book Value Per Share Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Alkali Metals's current stock value. Our valuation model uses many indicators to compare Alkali Metals value to that of its competitors to determine the firm's financial worth.
JavaScript chart by amCharts 3.21.15GUJALKALIINDIAGLYCOGNFCIMFAVENUSPIPESSAILALKALI 05B10B15B20B25B30B 0100200300400500600700800900
Alkali Metals Limited is rated below average in book value per share category among its peers. It is rated below average in net income category among its peers making up about  388,637  of Net Income per Book Value Per Share. At present, Alkali Metals' Net Income is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value Alkali Metals by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Alkali Metals' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Alkali Net Income vs. Book Value Per Share

Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.

Alkali Metals

Book Value per Share

 = 

Common Equity

Average Shares

 = 
50.42 X
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Alkali Metals

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
19.6 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Alkali Net Income Comparison

Alkali Metals is currently under evaluation in net income category among its peers.

Alkali Metals Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Alkali Metals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Alkali Metals will eventually generate negative long term returns. The profitability progress is the general direction of Alkali Metals' change in net profit over the period of time. It can combine multiple indicators of Alkali Metals, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income114.6 M120.4 M
Operating Income19.6 M24.7 M
Income Before Tax15.5 M15.9 M
Total Other Income Expense Net-4.1 M-4.3 M
Net Income19.6 M14.1 M
Income Tax Expense4.2 M3.7 M
Net Income From Continuing Ops11.3 M11.5 M
Net Income Applicable To Common Shares33.5 M35.2 M
Interest Income24 M21.3 M
Net Interest Income-25.6 M-26.9 M
Change To Netincome37 M23.6 M

Alkali Profitability Driver Comparison

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

Use Alkali Metals 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 Alkali Metals 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 Alkali Metals will appreciate offsetting losses from the drop in the long position's value.

Alkali Metals Pair Trading

Alkali Metals Limited Pair Trading Analysis

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

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Other Information on Investing in Alkali Stock

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