Euro Tech Price To Book vs. Return On Equity
| CLWT Stock | USD 1.50 0.03 1.96% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.19 | 0.2152 |
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For Euro Tech profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Euro Tech to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Euro Tech Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Euro Tech's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Euro Tech Holdings over time as well as its relative position and ranking within its peers.
Euro |
Is Trading Companies & Distributors 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 Euro Tech. If investors know Euro 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 Euro Tech listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 2.939 | Earnings Share 0.28 | Revenue Per Share 2.322 | Quarterly Revenue Growth 0.215 | Return On Assets (0.01) |
The market value of Euro Tech Holdings is measured differently than its book value, which is the value of Euro that is recorded on the company's balance sheet. Investors also form their own opinion of Euro Tech's value that differs from its market value or its book value, called intrinsic value, which is Euro Tech'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 Euro Tech's market value can be influenced by many factors that don't directly affect Euro Tech'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 Euro Tech's value and its price as these two are different measures arrived at by different means. Investors typically determine if Euro Tech is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Euro Tech'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.
Euro Tech Holdings Return On Equity vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Euro Tech's current stock value. Our valuation model uses many indicators to compare Euro Tech value to that of its competitors to determine the firm's financial worth. Euro Tech Holdings is number one stock in price to book category among its peers. It also is number one stock in return on equity category among its peers reporting about 0.14 of Return On Equity per Price To Book. The ratio of Price To Book to Return On Equity for Euro Tech Holdings is roughly 7.28 . At this time, Euro Tech's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Euro Tech 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.Euro Return On Equity 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.
Euro Tech |
| = | 0.77 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.
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.
Euro Tech |
| = | 0.11 |
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.
Euro Return On Equity Comparison
Euro Tech is currently under evaluation in return on equity category among its peers.
Euro Tech Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Euro Tech, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Euro Tech will eventually generate negative long term returns. The profitability progress is the general direction of Euro Tech's change in net profit over the period of time. It can combine multiple indicators of Euro Tech, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 1.1 M | 586.9 K | |
| Operating Income | -249 K | -236.6 K | |
| Income Before Tax | 1.7 M | 1.8 M | |
| Total Other Income Expense Net | 1.9 M | 2 M | |
| Net Income | 1.8 M | 1.9 M | |
| Income Tax Expense | 45 K | 67.9 K | |
| Net Income Applicable To Common Shares | 890.1 K | 934.6 K | |
| Net Income From Continuing Ops | 1.6 M | 1.7 M | |
| Interest Income | 37 K | 28.1 K | |
| Net Interest Income | 30 K | 27.6 K | |
| Change To Netincome | -104.4 K | -109.6 K | |
| Net Income Per Share | 0.24 | 0.25 | |
| Income Quality | (0.04) | (0.04) | |
| Net Income Per E B T | 1.08 | 1.13 |
Euro Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Euro Tech. 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 Euro Tech 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 Euro Tech's important profitability drivers and their relationship over time.
Use Euro Tech 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 Euro Tech 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 Euro Tech will appreciate offsetting losses from the drop in the long position's value.Euro Tech Pair Trading
Euro Tech Holdings Pair Trading Analysis
The ability to find closely correlated positions to Euro Tech could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Euro Tech 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 Euro Tech - 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 Euro Tech Holdings to buy it.
The correlation of Euro Tech 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 Euro Tech moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Euro Tech Holdings 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 Euro Tech 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 Euro Tech position
In addition to having Euro Tech 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 Euro Stock Analysis
When running Euro Tech's price analysis, check to measure Euro Tech'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 Euro Tech is operating at the current time. Most of Euro Tech's value examination focuses on studying past and present price action to predict the probability of Euro Tech's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Euro Tech's price. Additionally, you may evaluate how the addition of Euro Tech to your portfolios can decrease your overall portfolio volatility.