First Ottawa Price To Earning vs. Operating Margin

FOTB Stock  USD 130.00  5.00  4.00%   
Based on the key profitability measurements obtained from First Ottawa's financial statements, First Ottawa Bancshares may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess First Ottawa's ability to earn profits and add value for shareholders.
For First Ottawa profitability analysis, we use financial ratios and fundamental drivers that measure the ability of First Ottawa to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well First Ottawa Bancshares utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between First Ottawa's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of First Ottawa Bancshares 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 First Ottawa's value and its price as these two are different measures arrived at by different means. Investors typically determine if First Ottawa is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First Ottawa'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.

First Ottawa Bancshares Operating Margin vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining First Ottawa's current stock value. Our valuation model uses many indicators to compare First Ottawa value to that of its competitors to determine the firm's financial worth.
First Ottawa Bancshares is one of the top stocks in price to earning category among its peers. It also is one of the top stocks in operating margin category among its peers reporting about  0.01  of Operating Margin per Price To Earning. The ratio of Price To Earning to Operating Margin for First Ottawa Bancshares is roughly  67.17 . Comparative valuation analysis is a catch-all model that can be used if you cannot value First Ottawa by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for First Ottawa's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

First Operating Margin vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

First Ottawa

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
25.14 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.

First Ottawa

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.37 %
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.

First Operating Margin Comparison

First Ottawa is currently under evaluation in operating margin category among its peers.

First Ottawa Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in First Ottawa, profitability is also one of the essential criteria for including it into their portfolios because, without profit, First Ottawa will eventually generate negative long term returns. The profitability progress is the general direction of First Ottawa's change in net profit over the period of time. It can combine multiple indicators of First Ottawa, 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.
First Ottawa Bancshares, Inc. operates as the bank holding company for American Commercial Bank Trust, National Association that provides a range of banking and financial services to individual and corporate customers in LaSalle, Grundy, Cook, and surrounding counties in Illinois. First Ottawa Bancshares, Inc. was founded in 1865 and is based in Ottawa, Illinois. First Ottawa operates under BanksRegional classification in the United States and is traded on OTC Exchange.

First Profitability Driver Comparison

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

Use First Ottawa 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 First Ottawa 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 First Ottawa will appreciate offsetting losses from the drop in the long position's value.

First Ottawa Pair Trading

First Ottawa Bancshares Pair Trading Analysis

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

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Other Information on Investing in First Pink Sheet

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