Brother Industries Return On Equity vs. Price To Earning
| BRTHY Stock | USD 34.17 1.51 4.23% |
For Brother Industries profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Brother Industries to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Brother Industries Ltd utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Brother Industries's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Brother Industries Ltd over time as well as its relative position and ranking within its peers.
Brother |
Brother Industries Price To Earning vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Brother Industries's current stock value. Our valuation model uses many indicators to compare Brother Industries value to that of its competitors to determine the firm's financial worth. Brother Industries Ltd is number one stock in return on equity category among its peers. It also is number one stock in price to earning category among its peers reporting about 89.60 of Price To Earning per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Brother Industries by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Brother Industries' Pink Sheet. 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.Brother Price To Earning 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.
Brother Industries |
| = | 0.0885 |
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.
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.
Brother Industries |
| = | 7.93 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.
Brother Price To Earning Comparison
Brother Industries is currently under evaluation in price to earning category among its peers.
Brother Industries Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Brother Industries, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Brother Industries will eventually generate negative long term returns. The profitability progress is the general direction of Brother Industries' change in net profit over the period of time. It can combine multiple indicators of Brother Industries, 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.
Brother Industries, Ltd. manufactures and sells communications and printing equipment in Japan, the Americas, Europe, Asia, Oceania, the Middle East, Africa, and internationally. Brother Industries, Ltd. was founded in 1908 and is headquartered in Nagoya, Japan. Brother Industries operates under Business Equipment Supplies classification in the United States and is traded on OTC Exchange. It employs 41215 people.
Brother Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Brother Industries. 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 Brother Industries 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 Brother Industries' important profitability drivers and their relationship over time.
Use Brother Industries 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 Brother Industries 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 Brother Industries will appreciate offsetting losses from the drop in the long position's value.Brother Industries Pair Trading
Brother Industries Ltd Pair Trading Analysis
The ability to find closely correlated positions to Brother Industries could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Brother Industries 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 Brother Industries - 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 Brother Industries Ltd to buy it.
The correlation of Brother Industries 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 Brother Industries moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Brother Industries 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 Brother Industries 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 Brother Industries position
In addition to having Brother Industries 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 Tools for Brother Pink Sheet Analysis
When running Brother Industries' price analysis, check to measure Brother Industries' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Brother Industries is operating at the current time. Most of Brother Industries' value examination focuses on studying past and present price action to predict the probability of Brother Industries' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Brother Industries' price. Additionally, you may evaluate how the addition of Brother Industries to your portfolios can decrease your overall portfolio volatility.