Hannon Armstrong Return On Asset vs. Return On Equity

HASI Stock  USD 30.59  1.00  3.17%   
Considering the key profitability indicators obtained from Hannon Armstrong's historical financial statements, Hannon Armstrong Sustainable is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Hannon Armstrong's ability to earn profits and add value for shareholders. As of now, Hannon Armstrong's Days Sales Outstanding is decreasing as compared to previous years. The Hannon Armstrong's current Operating Cash Flow Sales Ratio is estimated to increase to 0.41, while Price To Sales Ratio is projected to decrease to 8.34. As of now, Hannon Armstrong's Income Tax Expense is increasing as compared to previous years. The Hannon Armstrong's current Net Income From Continuing Ops is estimated to increase to about 46.6 M, while Accumulated Other Comprehensive Income is projected to decrease to under 12.5 M.
For Hannon Armstrong profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hannon Armstrong to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hannon Armstrong Sustainable utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hannon Armstrong's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hannon Armstrong Sustainable over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Is Diversified REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hannon Armstrong. If investors know Hannon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hannon Armstrong listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.687
Dividend Share
1.64
Earnings Share
1.92
Revenue Per Share
1.223
Quarterly Revenue Growth
(0.42)
The market value of Hannon Armstrong Sus is measured differently than its book value, which is the value of Hannon that is recorded on the company's balance sheet. Investors also form their own opinion of Hannon Armstrong's value that differs from its market value or its book value, called intrinsic value, which is Hannon Armstrong's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hannon Armstrong's market value can be influenced by many factors that don't directly affect Hannon Armstrong's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hannon Armstrong's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hannon Armstrong is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hannon Armstrong'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.

Hannon Armstrong Sus Return On Equity vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hannon Armstrong's current stock value. Our valuation model uses many indicators to compare Hannon Armstrong value to that of its competitors to determine the firm's financial worth.
Hannon Armstrong Sustainable is rated below average in return on asset category among its peers. It is rated # 5 in return on equity category among its peers reporting about  2.85  of Return On Equity per Return On Asset. As of now, Hannon Armstrong's Return On Equity is increasing as compared to previous years. 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 Hannon Armstrong's earnings, one of the primary drivers of an investment's value.

Hannon Return On Equity vs. Return On Asset

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.

Hannon Armstrong

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0355
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.
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.

Hannon Armstrong

Return On Equity

 = 

Net Income

Total Equity

 = 
0.1
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.

Hannon Return On Equity Comparison

Hannon Armstrong is rated # 4 in return on equity category among its peers.

Hannon Armstrong Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hannon Armstrong, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hannon Armstrong will eventually generate negative long term returns. The profitability progress is the general direction of Hannon Armstrong's change in net profit over the period of time. It can combine multiple indicators of Hannon Armstrong, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income13.2 M12.5 M
Operating Income224.2 M235.5 M
Income Before Tax182.4 M191.5 M
Total Other Income Expense Net-41.9 M-39.8 M
Net Income147.8 M155.2 M
Income Tax Expense31.6 M33.2 M
Net Income Applicable To Common Shares47.7 M42.7 M
Net Income From Continuing Ops39.6 M46.6 M
Net Interest Income34.9 M36.6 M
Interest Income185.8 M108 M
Non Operating Income Net Other36 M47 M
Change To Netincome44.4 M46.6 M
Net Income Per Share 1.46  1.53 
Income Quality 0.67  1.11 
Net Income Per E B T 0.82  1.01 

Hannon Profitability Driver Comparison

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

Use Hannon Armstrong 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 Hannon Armstrong 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 Hannon Armstrong will appreciate offsetting losses from the drop in the long position's value.

Hannon Armstrong Pair Trading

Hannon Armstrong Sustainable Pair Trading Analysis

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

In addition to having Hannon Armstrong 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 Junk Bonds Funds Thematic Idea Now

Junk Bonds Funds
Junk Bonds Funds Theme
Funds or Etfs that invest most of their assets into speculative (junk) bonds or to other fixed income instruments with interest rates 3 to 4 percentage points above government issues. The Junk Bonds Funds theme has 38 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 Junk Bonds Funds Theme or any other thematic opportunities.
View All  Next Launch
When determining whether Hannon Armstrong Sus offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Hannon Armstrong's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Hannon Armstrong Sustainable Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Hannon Armstrong Sustainable Stock:
Check out Risk vs Return Analysis.
You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Hannon Armstrong's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hannon Armstrong Sus 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 Hannon Armstrong's income statement, its balance sheet, and the statement of cash flows.
Potential Hannon Armstrong investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Hannon Armstrong investors may work on each financial statement separately, they are all related. The changes in Hannon Armstrong's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Hannon Armstrong'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.