CTS Eventim Return On Equity vs. Profit Margin

EVD Stock  EUR 87.00  1.05  1.22%   
Taking into consideration CTS Eventim's profitability measurements, CTS Eventim AG may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess CTS Eventim's ability to earn profits and add value for shareholders.
For CTS Eventim profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CTS Eventim to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CTS Eventim AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CTS Eventim's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CTS Eventim AG over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between CTS Eventim's value and its price as these two are different measures arrived at by different means. Investors typically determine if CTS Eventim is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CTS Eventim'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.

CTS Eventim AG Profit Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining CTS Eventim's current stock value. Our valuation model uses many indicators to compare CTS Eventim value to that of its competitors to determine the firm's financial worth.
CTS Eventim AG is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in profit margin category among its peers fabricating about  0.31  of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for CTS Eventim AG is roughly  3.19 . 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 CTS Eventim's earnings, one of the primary drivers of an investment's value.

CTS 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.

CTS Eventim

Return On Equity

 = 

Net Income

Total Equity

 = 
0.36
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.

CTS Eventim

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.11 %
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.

CTS Profit Margin Comparison

CTS Eventim is currently under evaluation in profit margin category among its peers.

CTS Eventim Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in CTS Eventim, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CTS Eventim will eventually generate negative long term returns. The profitability progress is the general direction of CTS Eventim's change in net profit over the period of time. It can combine multiple indicators of CTS Eventim, 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.
It operates in two segments, Ticketing and Live Entertainment. The company was formerly known as CTS EVENTIM AG and changed its name to CTS Eventim AG Co. CTS EVENTIM operates under Media - Diversified classification in Germany and is traded on Frankfurt Stock Exchange. It employs 2945 people.

CTS Profitability Driver Comparison

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

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

CTS Eventim Pair Trading

CTS Eventim AG Pair Trading Analysis

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

In addition to having CTS Eventim 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 Banks - Regional Thematic Idea Now

Banks - Regional
Banks - Regional Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Banks - Regional theme has 19 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 Banks - Regional Theme or any other thematic opportunities.
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Other Information on Investing in CTS Stock

To fully project CTS Eventim's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CTS Eventim AG 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 CTS Eventim's income statement, its balance sheet, and the statement of cash flows.
Potential CTS Eventim investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although CTS Eventim investors may work on each financial statement separately, they are all related. The changes in CTS Eventim's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on CTS Eventim'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.