CVR Energy Return On Equity vs. Profit Margin

CVI Stock  USD 18.08  0.07  0.39%   
Based on the key profitability measurements obtained from CVR Energy's financial statements, CVR Energy is yielding more profit at the present time then in previous quarter. It has a moderate likelihood of reporting better profitability numbers in January. Profitability indicators assess CVR Energy's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.90791027
Current Value
0.95
Quarterly Volatility
0.52668323
 
Credit Downgrade
 
Yuan Drop
 
Covid
The CVR Energy's current Price To Sales Ratio is estimated to increase to 0.41. The CVR Energy's current Days Sales Outstanding is estimated to increase to 13.06. As of now, CVR Energy's Income Tax Expense is increasing as compared to previous years. The CVR Energy's current Net Income Applicable To Common Shares is estimated to increase to about 437.5 M, while Accumulated Other Comprehensive Income is forecasted to increase to (1.6 B).
For CVR Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CVR Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CVR Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CVR Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CVR Energy over time as well as its relative position and ranking within its peers.
  

CVR Energy's Revenue Breakdown by Earning Segment

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For more detail on how to invest in CVR Stock please use our How to Invest in CVR Energy guide.
Is Oil & Gas Refining & Marketing 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 CVR Energy. If investors know CVR 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 CVR Energy 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
(0.84)
Dividend Share
1.5
Earnings Share
0.69
Revenue Per Share
78.259
Quarterly Revenue Growth
(0.27)
The market value of CVR Energy is measured differently than its book value, which is the value of CVR that is recorded on the company's balance sheet. Investors also form their own opinion of CVR Energy's value that differs from its market value or its book value, called intrinsic value, which is CVR Energy'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 CVR Energy's market value can be influenced by many factors that don't directly affect CVR Energy'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 CVR Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if CVR Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CVR Energy'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.

CVR Energy Profit Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining CVR Energy's current stock value. Our valuation model uses many indicators to compare CVR Energy value to that of its competitors to determine the firm's financial worth.
CVR Energy is rated third in return on equity category among its peers. It is rated fourth in profit margin category among its peers fabricating about  0.09  of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for CVR Energy is roughly  11.55 . As of now, CVR Energy's Return On Equity is increasing as compared to previous years. 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 CVR Energy's earnings, one of the primary drivers of an investment's value.

CVR Profit Margin 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.

CVR Energy

Return On Equity

 = 

Net Income

Total Equity

 = 
0.1
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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

CVR Energy

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.01 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

CVR Profit Margin Comparison

CVR Energy is currently under evaluation in profit margin category among its peers.

CVR Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in CVR Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CVR Energy will eventually generate negative long term returns. The profitability progress is the general direction of CVR Energy's change in net profit over the period of time. It can combine multiple indicators of CVR Energy, 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 Income-1.6 B-1.6 B
Operating Income1.1 B1.2 B
Income Before Tax1.1 B1.1 B
Total Other Income Expense Net-38 M-39.9 M
Net Income878 M921.9 M
Income Tax Expense207 M217.3 M
Net Income Applicable To Common Shares416.7 M437.5 M
Net Income From Continuing Ops878 M921.9 M
Non Operating Income Net Other-69.3 M-65.8 M
Interest Income98.9 M67.8 M
Net Interest Income-52 M-54.6 M
Change To Netincome84 M88.1 M
Net Income Per Share 7.65  8.03 
Income Quality 1.08  1.03 
Net Income Per E B T 0.71  0.93 

CVR Profitability Driver Comparison

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

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

CVR Energy Pair Trading

CVR Energy Pair Trading Analysis

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

In addition to having CVR Energy 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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Books Theme
Companies involved in publishing of books, newspapers, periodicals and other mass publications. The Books theme has 48 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 Books Theme or any other thematic opportunities.
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When determining whether CVR Energy offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of CVR Energy's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cvr Energy Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cvr Energy Stock:
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For more detail on how to invest in CVR Stock please use our How to Invest in CVR Energy guide.
You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
To fully project CVR Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CVR Energy 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 CVR Energy's income statement, its balance sheet, and the statement of cash flows.
Potential CVR Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although CVR Energy investors may work on each financial statement separately, they are all related. The changes in CVR Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on CVR Energy'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.