Axita Cotton Return On Equity vs. Earnings Per Share

AXITA Stock   11.21  0.10  0.88%   
Considering Axita Cotton's profitability and operating efficiency indicators, Axita Cotton 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 Axita Cotton's ability to earn profits and add value for shareholders.
For Axita Cotton profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Axita Cotton to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Axita Cotton Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Axita Cotton's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Axita Cotton 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 Axita Cotton's value and its price as these two are different measures arrived at by different means. Investors typically determine if Axita Cotton is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Axita Cotton'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.

Axita Cotton Limited Earnings Per Share vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Axita Cotton's current stock value. Our valuation model uses many indicators to compare Axita Cotton value to that of its competitors to determine the firm's financial worth.
Axita Cotton Limited is number one stock in return on equity category among its peers. It also is number one stock in earnings per share category among its peers creating about  2.01  of Earnings Per Share per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Axita Cotton by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Axita Cotton's 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.

Axita Earnings 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.

Axita Cotton

Return On Equity

 = 

Net Income

Total Equity

 = 
0.35
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.
Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.

Axita Cotton

Earnings per Share

 = 

Earnings

Average Shares

 = 
0.70 X
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.

Axita Earnings Per Share Comparison

Axita Cotton is currently under evaluation in earnings per share category among its peers.

Axita Cotton Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Axita Cotton, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Axita Cotton will eventually generate negative long term returns. The profitability progress is the general direction of Axita Cotton's change in net profit over the period of time. It can combine multiple indicators of Axita Cotton, 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 Income384.8 M404 M
Operating Income281.1 M295.1 M
Income Before Tax273 M286.7 M
Total Other Income Expense Net-8 M-8.4 M
Net Income203.4 M213.5 M
Income Tax Expense69.7 M73.1 M
Interest Income6.8 M10.9 M
Net Interest Income-8 M-8.4 M
Net Income From Continuing Ops203.4 M155.4 M

Axita Profitability Driver Comparison

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

Use Axita Cotton 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 Axita Cotton 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 Axita Cotton will appreciate offsetting losses from the drop in the long position's value.

Axita Cotton Pair Trading

Axita Cotton Limited Pair Trading Analysis

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

Use Investing Themes to Complement your Axita Cotton position

In addition to having Axita Cotton 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.

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SPAC
SPAC Theme
Entities that are involved in raising capital, merging with and acquiring companies, and investing in private equity through leveraged buyouts. The SPAC theme has 25 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 SPAC Theme or any other thematic opportunities.
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Other Information on Investing in Axita Stock

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