Confluent Price To Book vs. Net Income

CFLT Stock  USD 28.89  1.15  3.83%   
Based on Confluent's profitability indicators, Confluent may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Confluent's ability to earn profits and add value for shareholders. At this time, Confluent's Days Sales Outstanding is comparatively stable compared to the past year. Sales General And Administrative To Revenue is likely to gain to 0.30 in 2024, whereas Operating Cash Flow Sales Ratio is likely to drop (0.14) in 2024. At this time, Confluent's Accumulated Other Comprehensive Income is comparatively stable compared to the past year. Total Other Income Expense Net is likely to gain to about 39.1 M in 2024, whereas Operating Income is likely to drop (466.1 M) in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.540.7044
Way Down
Slightly volatile
For Confluent profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Confluent to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Confluent utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Confluent's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Confluent over time as well as its relative position and ranking within its peers.
  

Confluent's Revenue Breakdown by Earning Segment

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For more information on how to buy Confluent Stock please use our How to Invest in Confluent guide.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Confluent. If investors know Confluent will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Confluent listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.10)
Revenue Per Share
2.89
Quarterly Revenue Growth
0.25
Return On Assets
(0.09)
Return On Equity
(0.41)
The market value of Confluent is measured differently than its book value, which is the value of Confluent that is recorded on the company's balance sheet. Investors also form their own opinion of Confluent's value that differs from its market value or its book value, called intrinsic value, which is Confluent's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Confluent's market value can be influenced by many factors that don't directly affect Confluent's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Confluent's value and its price as these two are different measures arrived at by different means. Investors typically determine if Confluent is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Confluent'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.

Confluent Net Income vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Confluent's current stock value. Our valuation model uses many indicators to compare Confluent value to that of its competitors to determine the firm's financial worth.
JavaScript chart by amCharts 3.21.15MNDYGLBEGTLBDOCSDOCNCFLT -500M-400M-300M-200M-100M0100M 010203040506070
Confluent is rated below average in price to book category among its peers. It also is rated below average in net income category among its peers . At this time, Confluent's Net Loss is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Confluent by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Confluent Net Income vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Confluent

P/B

 = 

MV Per Share

BV Per Share

 = 
10.14 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.

Confluent

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
(442.75 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.

Confluent Net Income Comparison

100%
Confluent is currently under evaluation in net income category among its peers.

Confluent Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Confluent, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Confluent will eventually generate negative long term returns. The profitability progress is the general direction of Confluent's change in net profit over the period of time. It can combine multiple indicators of Confluent, 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 Income1.3 M1.3 M
Net Interest Income7.5 M4.2 M
Interest Income7.5 M4.2 M
Operating Income-443.9 M-466.1 M
Net Loss-454.5 M-477.3 M
Income Before Tax-406.7 M-427 M
Total Other Income Expense Net37.2 M39.1 M
Net Loss-407.3 M-427.7 M
Net Loss-442.7 M-464.9 M
Income Tax Expense36.1 M37.9 M
Non Operating Income Net Other-6.3 K-6.6 K
Change To Netincome320.3 M175.3 M
Net Loss(1.47)(1.55)
Income Quality 0.23  0.43 
Net Income Per E B T 1.09  0.82 

Confluent Profitability Driver Comparison

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

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

Confluent Pair Trading

Confluent Pair Trading Analysis

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

In addition to having Confluent 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?

Run Currency Funds Thematic Idea Now

Currency Funds
Currency Funds Theme
Funds or Etfs investing in a single currency or combination of currencies from different countries in order to replicate respective foreign exchange markets. The Currency Funds theme has 43 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 Currency Funds Theme or any other thematic opportunities.
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Additional Tools for Confluent Stock Analysis

When running Confluent's price analysis, check to measure Confluent's 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 Confluent is operating at the current time. Most of Confluent's value examination focuses on studying past and present price action to predict the probability of Confluent's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Confluent's price. Additionally, you may evaluate how the addition of Confluent to your portfolios can decrease your overall portfolio volatility.