Eucatex SA Gross Profit vs. Return On Equity
| EUCA4 Preferred Stock | BRL 13.49 0.05 0.37% |
For Eucatex SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Eucatex SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Eucatex SA Indstria utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Eucatex SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Eucatex SA Indstria over time as well as its relative position and ranking within its peers.
Eucatex |
Eucatex SA Indstria Return On Equity vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Eucatex SA's current stock value. Our valuation model uses many indicators to compare Eucatex SA value to that of its competitors to determine the firm's financial worth. Eucatex SA Indstria is one of the top stocks in gross profit category among its peers. It also is one of the top stocks in return on equity category among its peers . The ratio of Gross Profit to Return On Equity for Eucatex SA Indstria is about 4,664,206,490 . 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 Eucatex SA's earnings, one of the primary drivers of an investment's value.Eucatex Return On Equity vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Eucatex SA |
| = | 790.58 M |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
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.
Eucatex SA |
| = | 0.17 |
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.
Eucatex Return On Equity Comparison
Eucatex SA is currently under evaluation in return on equity category among its peers.
Eucatex SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Eucatex SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Eucatex SA will eventually generate negative long term returns. The profitability progress is the general direction of Eucatex SA's change in net profit over the period of time. It can combine multiple indicators of Eucatex SA, 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.
Indstria e Comrcio manufactures and markets ceiling and insulating materials in Brazil. Indstria e Comrcio was founded in 1951 and is headquartered in So Paulo, Brazil. EUCATEX PN operates under Building Products Equipment classification in Brazil and is traded on Sao Paolo Stock Exchange.
Eucatex Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Eucatex SA. 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 Eucatex SA 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 Eucatex SA's important profitability drivers and their relationship over time.
Use Eucatex SA 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 Eucatex SA 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 Eucatex SA will appreciate offsetting losses from the drop in the long position's value.Eucatex SA Pair Trading
Eucatex SA Indstria Pair Trading Analysis
The ability to find closely correlated positions to Eucatex SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Eucatex SA 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 Eucatex SA - 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 Eucatex SA Indstria to buy it.
The correlation of Eucatex SA 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 Eucatex SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Eucatex SA Indstria 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 Eucatex SA 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 Eucatex SA position
In addition to having Eucatex SA 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 Eucatex Preferred Stock Analysis
When running Eucatex SA's price analysis, check to measure Eucatex SA'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 Eucatex SA is operating at the current time. Most of Eucatex SA's value examination focuses on studying past and present price action to predict the probability of Eucatex SA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Eucatex SA's price. Additionally, you may evaluate how the addition of Eucatex SA to your portfolios can decrease your overall portfolio volatility.