Africa Oil Shares Owned By Insiders vs. Return On Equity

AOIFF Stock  USD 1.37  0.02  1.44%   
Taking into consideration Africa Oil's profitability measurements, Africa Oil Corp 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 Africa Oil's ability to earn profits and add value for shareholders.
For Africa Oil profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Africa Oil to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Africa Oil Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Africa Oil's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Africa Oil Corp 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 Africa Oil's value and its price as these two are different measures arrived at by different means. Investors typically determine if Africa Oil is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Africa Oil'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.

Africa Oil Corp Return On Equity vs. Shares Owned By Insiders Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Africa Oil's current stock value. Our valuation model uses many indicators to compare Africa Oil value to that of its competitors to determine the firm's financial worth.
Africa Oil Corp is rated below average in shares owned by insiders category among its peers. It is rated below average in return on equity category among its peers reporting about  0.01  of Return On Equity per Shares Owned By Insiders. The ratio of Shares Owned By Insiders to Return On Equity for Africa Oil Corp is roughly  86.20 . 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 Africa Oil's earnings, one of the primary drivers of an investment's value.

Africa Return On Equity vs. Shares Owned By Insiders

Shares Owned by Insiders show the percentage of outstanding shares owned by insiders (such as principal officers or members of the board of directors) or private individuals and entities with over 5% of the total shares outstanding. Company executives or private individuals with access to insider information share information about a firm's operations that is not available to the general public.

Africa Oil

Insiders Shares

 = 

Executives Shares

+

Employees

 = 
15.71 %
Although the research on effects of insider trading on prices and volatility is still relatively inconclusive, and investors are advised to pay close attention to the distribution of equities among company's stakeholders to avoid many problems associated with the disclosure of price-sensitive information.
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.

Africa Oil

Return On Equity

 = 

Net Income

Total Equity

 = 
0.18
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.

Africa Return On Equity Comparison

Africa Oil is currently under evaluation in return on equity category among its peers.

Africa Oil Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Africa Oil, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Africa Oil will eventually generate negative long term returns. The profitability progress is the general direction of Africa Oil's change in net profit over the period of time. It can combine multiple indicators of Africa Oil, 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.
Africa Oil Corp., together with its subsidiaries, operates as an oil and gas exploration and development company in Kenya, Nigeria, and South Africa. Africa Oil Corp. was incorporated in 1983 and is headquartered in Vancouver, Canada. AFRICA OIL operates under Oil Gas EP classification in the United States and is traded on OTC Exchange.

Africa Profitability Driver Comparison

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

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Use Investing Themes to Complement your Africa Oil position

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Other Information on Investing in Africa Pink Sheet

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