Metro AG Net Income vs. Revenue
| B4B3 Stock | EUR 4.94 0.21 4.08% |
For Metro AG profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Metro AG to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Metro AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Metro AG's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Metro AG over time as well as its relative position and ranking within its peers.
Metro |
Metro AG Revenue vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Metro AG's current stock value. Our valuation model uses many indicators to compare Metro AG value to that of its competitors to determine the firm's financial worth. Metro AG is number one stock in net income category among its peers. It also is the top company in revenue category among its peers totaling about 132.83 of Revenue per Net Income. 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 Metro AG's earnings, one of the primary drivers of an investment's value.Metro Revenue vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Metro AG |
| = | 224 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Metro AG |
| = | 29.75 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Metro Revenue vs Competition
Metro AG is the top company in revenue category among its peers. Market size based on revenue of Food Distribution industry is currently estimated at about 509.28 Billion. Metro AG holds roughly 29.75 Billion in revenue claiming about 6% of equities under Food Distribution industry.
Metro AG Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Metro AG, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Metro AG will eventually generate negative long term returns. The profitability progress is the general direction of Metro AG's change in net profit over the period of time. It can combine multiple indicators of Metro AG, 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.
It operates 771 wholesale stores under the METRO and MAKRO brands primarily serving the needs of hotels, restaurants, catering companies, and independent retailers, as well as service providers and authorities. The company was formerly known as METRO Wholesale Food Specialist AG and changed its name to METRO AG in August 2017. METRO AG operates under Food Distribution classification in Germany and is traded on Frankfurt Stock Exchange. It employs 132293 people.
Metro Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Metro AG. 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 Metro AG 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 Metro AG's important profitability drivers and their relationship over time.
Use Metro AG 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 Metro AG 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 Metro AG will appreciate offsetting losses from the drop in the long position's value.Metro AG Pair Trading
Metro AG Pair Trading Analysis
The ability to find closely correlated positions to Metro AG could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Metro AG 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 Metro AG - 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 Metro AG to buy it.
The correlation of Metro AG 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 Metro AG moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Metro AG 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 Metro AG 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 Metro AG position
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Other Information on Investing in Metro Stock
To fully project Metro AG's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Metro AG 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 Metro AG's income statement, its balance sheet, and the statement of cash flows.