Heidelberg Materials Net Income vs. Return On Asset
| HEI Stock | EUR 119.20 1.15 0.96% |
For Heidelberg Materials profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Heidelberg Materials to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Heidelberg Materials AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Heidelberg Materials's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Heidelberg Materials AG over time as well as its relative position and ranking within its peers.
Heidelberg |
Heidelberg Materials Return On Asset vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Heidelberg Materials's current stock value. Our valuation model uses many indicators to compare Heidelberg Materials value to that of its competitors to determine the firm's financial worth. Heidelberg Materials AG is rated below average in net income category among its peers. It is rated below average in return on asset category among its peers . The ratio of Net Income to Return On Asset for Heidelberg Materials AG is about 42,590,799,031 . 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 Heidelberg Materials' earnings, one of the primary drivers of an investment's value.Heidelberg Return On Asset vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Heidelberg Materials |
| = | 1.76 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
Heidelberg Materials |
| = | 0.0413 |
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.
Heidelberg Return On Asset Comparison
Heidelberg Materials is rated below average in return on asset category among its peers.
Heidelberg Materials Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Heidelberg Materials, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Heidelberg Materials will eventually generate negative long term returns. The profitability progress is the general direction of Heidelberg Materials' change in net profit over the period of time. It can combine multiple indicators of Heidelberg Materials, 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.
HeidelbergCement AG produces and distributes cement, aggregates, ready-mixed concrete, and asphalt worldwide. HeidelbergCement AG was founded in 1873 and is headquartered in Heidelberg, Germany. HEIDELBERGCEMENT operates under Building Materials classification in Germany and is traded on Frankfurt Stock Exchange. It employs 579 people.
Heidelberg Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Heidelberg Materials. 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 Heidelberg Materials 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 Heidelberg Materials' important profitability drivers and their relationship over time.
Use Heidelberg Materials 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 Heidelberg Materials 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 Heidelberg Materials will appreciate offsetting losses from the drop in the long position's value.Heidelberg Materials Pair Trading
Heidelberg Materials AG Pair Trading Analysis
The ability to find closely correlated positions to Heidelberg Materials could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Heidelberg Materials 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 Heidelberg Materials - 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 Heidelberg Materials AG to buy it.
The correlation of Heidelberg Materials 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 Heidelberg Materials moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Heidelberg Materials 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 Heidelberg Materials 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 Heidelberg Materials position
In addition to having Heidelberg Materials 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 Heidelberg Stock
To fully project Heidelberg Materials' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Heidelberg Materials 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 Heidelberg Materials' income statement, its balance sheet, and the statement of cash flows.