Allegheny Technologies Operating Margin vs. Price To Earning
| ATD Stock | EUR 53.24 0.12 0.23% |
For Allegheny Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Allegheny Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Allegheny Technologies Incorporated utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Allegheny Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Allegheny Technologies Incorporated over time as well as its relative position and ranking within its peers.
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Allegheny Technologies Price To Earning vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Allegheny Technologies's current stock value. Our valuation model uses many indicators to compare Allegheny Technologies value to that of its competitors to determine the firm's financial worth. Allegheny Technologies Incorporated is number one stock in operating margin category among its peers. It also is number one stock in price to earning category among its peers reporting about 157.84 of Price To Earning per Operating Margin. 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 Allegheny Technologies' earnings, one of the primary drivers of an investment's value.Allegheny Price To Earning 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.
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| = | 0.10 % |
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.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
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| = | 16.10 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Allegheny Price To Earning Comparison
Allegheny Technologies is currently under evaluation in price to earning category among its peers.
Allegheny Technologies Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Allegheny Technologies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Allegheny Technologies will eventually generate negative long term returns. The profitability progress is the general direction of Allegheny Technologies' change in net profit over the period of time. It can combine multiple indicators of Allegheny Technologies, 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.
Allegheny Technologies Incorporated manufactures and sells specialty materials and components worldwide. Allegheny Technologies Incorporated was founded in 1960 and is based in Pittsburgh, Pennsylvania. Allegheny Technologies operates under Metal Fabrication classification in Germany and is traded on Frankfurt Stock Exchange. It employs 8800 people.
Allegheny Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Allegheny Technologies. 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 Allegheny Technologies 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 Allegheny Technologies' important profitability drivers and their relationship over time.
Use Allegheny Technologies 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 Allegheny Technologies 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 Allegheny Technologies will appreciate offsetting losses from the drop in the long position's value.Allegheny Technologies Pair Trading
Allegheny Technologies Incorporated Pair Trading Analysis
The ability to find closely correlated positions to Allegheny Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Allegheny Technologies 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 Allegheny Technologies - 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 Allegheny Technologies Incorporated to buy it.
The correlation of Allegheny Technologies 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 Allegheny Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Allegheny Technologies 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 Allegheny Technologies 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 Allegheny Technologies position
In addition to having Allegheny Technologies 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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Additional Information and Resources on Investing in Allegheny Stock
When determining whether Allegheny Technologies offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Allegheny Technologies' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Allegheny Technologies Incorporated Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Allegheny Technologies Incorporated Stock:Check out Trending Equities. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
To fully project Allegheny Technologies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Allegheny Technologies 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 Allegheny Technologies' income statement, its balance sheet, and the statement of cash flows.