Advanced Micro Return On Equity vs. Cash Per Share
| AMD Stock | EUR 130.50 1.80 1.40% |
For Advanced Micro profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Advanced Micro to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Advanced Micro Devices utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Advanced Micro's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Advanced Micro Devices over time as well as its relative position and ranking within its peers.
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Advanced Micro Devices Cash Per Share vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Advanced Micro's current stock value. Our valuation model uses many indicators to compare Advanced Micro value to that of its competitors to determine the firm's financial worth. Advanced Micro Devices is rated fifth in return on equity category among its peers. It also is rated fifth in cash per share category among its peers fabricating about 73.82 of Cash Per Share 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 Advanced Micro's earnings, one of the primary drivers of an investment's value.Advanced Cash Per Share 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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| = | 0.0424 |
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 per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.
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| = | 3.13 X |
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.
Advanced Cash Per Share Comparison
Advanced Micro is rated fourth in cash per share category among its peers.
Advanced Micro Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Advanced Micro, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Advanced Micro will eventually generate negative long term returns. The profitability progress is the general direction of Advanced Micro's change in net profit over the period of time. It can combine multiple indicators of Advanced Micro, 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.
Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. Advanced Micro Devices, Inc. was founded in 1969 and is headquartered in Santa Clara, California. ADVANCED MIC operates under Semiconductors classification in Germany and is traded on Frankfurt Stock Exchange. It employs 12600 people.
Advanced Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Advanced Micro. 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 Advanced Micro 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 Advanced Micro's important profitability drivers and their relationship over time.
Use Advanced Micro 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 Advanced Micro 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 Advanced Micro will appreciate offsetting losses from the drop in the long position's value.Advanced Micro Pair Trading
Advanced Micro Devices Pair Trading Analysis
The ability to find closely correlated positions to Advanced Micro could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Advanced Micro 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 Advanced Micro - 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 Advanced Micro Devices to buy it.
The correlation of Advanced Micro 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 Advanced Micro moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Advanced Micro Devices 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 Advanced Micro 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 Advanced Micro position
In addition to having Advanced Micro 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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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Entertainment theme has 61 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 Entertainment Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Advanced Stock
When determining whether Advanced Micro Devices is a strong investment it is important to analyze Advanced Micro's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Advanced Micro's future performance. For an informed investment choice regarding Advanced Stock, refer to the following important reports:Check out Trending Equities. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
To fully project Advanced Micro's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Advanced Micro Devices 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 Advanced Micro's income statement, its balance sheet, and the statement of cash flows.