Fairchem Organics Return On Equity vs. Operating Margin
| FAIRCHEMOR | 1,164 30.10 2.52% |
For Fairchem Organics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fairchem Organics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fairchem Organics Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fairchem Organics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fairchem Organics Limited over time as well as its relative position and ranking within its peers.
Fairchem |
Fairchem Organics Operating Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Fairchem Organics's current stock value. Our valuation model uses many indicators to compare Fairchem Organics value to that of its competitors to determine the firm's financial worth. Fairchem Organics Limited is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in operating margin category among its peers reporting about 0.79 of Operating Margin per Return On Equity. The ratio of Return On Equity to Operating Margin for Fairchem Organics Limited is roughly 1.27 . 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 Fairchem Organics' earnings, one of the primary drivers of an investment's value.Fairchem Operating 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.
Fairchem Organics |
| = | 0.15 |
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.
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.
Fairchem Organics |
| = | 0.12 % |
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.
Fairchem Operating Margin Comparison
Fairchem Organics is currently under evaluation in operating margin category among its peers.
Fairchem Organics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Fairchem Organics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fairchem Organics will eventually generate negative long term returns. The profitability progress is the general direction of Fairchem Organics' change in net profit over the period of time. It can combine multiple indicators of Fairchem Organics, 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 | 806.2 M | 716.6 M | |
| Net Interest Income | -42.4 M | -44.5 M | |
| Interest Income | 423 K | 717 K | |
| Operating Income | 1.3 B | 897.6 M | |
| Net Income From Continuing Ops | 405 M | 508.1 M | |
| Income Before Tax | 546 M | 670.7 M | |
| Total Other Income Expense Net | -773.8 M | -735.1 M | |
| Net Income Applicable To Common Shares | 500.3 M | 518.6 M | |
| Net Income | 405 M | 465.2 M | |
| Income Tax Expense | 141 M | 162.6 M | |
| Change To Netincome | 85.8 M | 57.9 M |
Fairchem Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Fairchem Organics. 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 Fairchem Organics 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 Fairchem Organics' important profitability drivers and their relationship over time.
Use Fairchem Organics 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 Fairchem Organics 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 Fairchem Organics will appreciate offsetting losses from the drop in the long position's value.Fairchem Organics Pair Trading
Fairchem Organics Limited Pair Trading Analysis
The ability to find closely correlated positions to Fairchem Organics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fairchem Organics 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 Fairchem Organics - 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 Fairchem Organics Limited to buy it.
The correlation of Fairchem Organics 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 Fairchem Organics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fairchem Organics 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 Fairchem Organics 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 Fairchem Organics position
In addition to having Fairchem Organics 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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Other Information on Investing in Fairchem Stock
To fully project Fairchem Organics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Fairchem Organics 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 Fairchem Organics' income statement, its balance sheet, and the statement of cash flows.