MGI Digital Operating Margin vs. Return On Equity

ALMDG Stock  EUR 14.52  0.24  1.63%   
Taking into consideration MGI Digital's profitability measurements, MGI Digital 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 MGI Digital's ability to earn profits and add value for shareholders.
For MGI Digital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MGI Digital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MGI Digital utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MGI Digital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MGI Digital 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 MGI Digital's value and its price as these two are different measures arrived at by different means. Investors typically determine if MGI Digital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MGI Digital'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.

MGI Digital Return On Equity vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining MGI Digital's current stock value. Our valuation model uses many indicators to compare MGI Digital value to that of its competitors to determine the firm's financial worth.
MGI Digital is number one stock in operating margin category among its peers. It also is number one stock in return on equity category among its peers reporting about  0.29  of Return On Equity per Operating Margin. The ratio of Operating Margin to Return On Equity for MGI Digital is roughly  3.43 . 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 MGI Digital's earnings, one of the primary drivers of an investment's value.

MGI Return On Equity vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

MGI Digital

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.19 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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.

MGI Digital

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0555
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.

MGI Return On Equity Comparison

MGI Digital is currently under evaluation in return on equity category among its peers.

MGI Digital Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in MGI Digital, profitability is also one of the essential criteria for including it into their portfolios because, without profit, MGI Digital will eventually generate negative long term returns. The profitability progress is the general direction of MGI Digital's change in net profit over the period of time. It can combine multiple indicators of MGI Digital, 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.
MGI Digital Technology Socit Anonyme designs, manufactures, and sells digital printing and finishing equipment for the graphic industry in France and internationally. MGI Digital Technology Socit Anonyme was founded in 1982 and is headquartered in Fresnes, France. MGI DIGITAL operates under Business Services classification in France and is traded on Paris Stock Exchange. It employs 214 people.

MGI Profitability Driver Comparison

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

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Additional Tools for MGI Stock Analysis

When running MGI Digital's price analysis, check to measure MGI Digital's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy MGI Digital is operating at the current time. Most of MGI Digital's value examination focuses on studying past and present price action to predict the probability of MGI Digital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move MGI Digital's price. Additionally, you may evaluate how the addition of MGI Digital to your portfolios can decrease your overall portfolio volatility.