Elektro Redes Operating Margin vs. Return On Asset
| EKTR4 Preferred Stock | BRL 49.00 2.00 3.92% |
For Elektro Redes profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Elektro Redes to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Elektro Redes SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Elektro Redes's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Elektro Redes SA over time as well as its relative position and ranking within its peers.
Elektro |
Elektro Redes SA Return On Asset vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Elektro Redes's current stock value. Our valuation model uses many indicators to compare Elektro Redes value to that of its competitors to determine the firm's financial worth. Elektro Redes SA is rated # 2 in operating margin category among its peers. It is one of the top stocks in return on asset category among its peers reporting about 0.51 of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Elektro Redes SA is roughly 1.96 . 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 Elektro Redes' earnings, one of the primary drivers of an investment's value.Elektro Return On Asset vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Elektro Redes |
| = | 0.22 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Elektro Redes |
| = | 0.11 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Elektro Return On Asset Comparison
Elektro Redes is currently under evaluation in return on asset category among its peers.
Elektro Redes Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Elektro Redes, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Elektro Redes will eventually generate negative long term returns. The profitability progress is the general direction of Elektro Redes' change in net profit over the period of time. It can combine multiple indicators of Elektro Redes, 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.
Elektro Redes S.A. engages in the distribution of electricity in Brazil. The company was founded in 1998 and is headquartered in Campinas, Brazil. ELEKTRO PN operates under Utilities - Diversified classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 3614 people.
Elektro Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Elektro Redes. 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 Elektro Redes 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 Elektro Redes' important profitability drivers and their relationship over time.
Use Elektro Redes 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 Elektro Redes 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 Elektro Redes will appreciate offsetting losses from the drop in the long position's value.Elektro Redes Pair Trading
Elektro Redes SA Pair Trading Analysis
The ability to find closely correlated positions to Elektro Redes could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Elektro Redes 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 Elektro Redes - 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 Elektro Redes SA to buy it.
The correlation of Elektro Redes 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 Elektro Redes moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Elektro Redes SA 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 Elektro Redes 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 Elektro Redes position
In addition to having Elektro Redes 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 Investor Favorites Thematic Idea Now
Investor Favorites
Macroaxis most traded equities with largest long positions over the last 2 years. The Investor Favorites theme has 21 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 Investor Favorites Theme or any other thematic opportunities.
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Additional Tools for Elektro Preferred Stock Analysis
When running Elektro Redes' price analysis, check to measure Elektro Redes' 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 Elektro Redes is operating at the current time. Most of Elektro Redes' value examination focuses on studying past and present price action to predict the probability of Elektro Redes' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Elektro Redes' price. Additionally, you may evaluate how the addition of Elektro Redes to your portfolios can decrease your overall portfolio volatility.