Heidelberg Materials Operating Margin vs. Return On Equity
| HEI Stock | 119.20 1.10 0.91% |
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.
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Heidelberg Materials Return On Equity vs. Operating Margin 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 operating margin category among its peers. It is rated below average in return on equity category among its peers reporting about 0.96 of Return On Equity per Operating Margin. The ratio of Operating Margin to Return On Equity for Heidelberg Materials AG is roughly 1.04 . 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 Equity vs. Operating Margin
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.
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| = | 0.10 % |
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.
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.
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| = | 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.
Heidelberg Return On Equity Comparison
Heidelberg Materials is rated # 5 in return on equity category among its peers.
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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A long-term portfolio of publicly-traded stocks on US exchanges that are owned by Warren Buffett's holding company Berkshire Hathaway. The Warren Buffett Holdings theme has 45 constituents at this time.
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Additional Tools for Heidelberg Stock Analysis
When running Heidelberg Materials' price analysis, check to measure Heidelberg Materials' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Heidelberg Materials is operating at the current time. Most of Heidelberg Materials' value examination focuses on studying past and present price action to predict the probability of Heidelberg Materials' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Heidelberg Materials' price. Additionally, you may evaluate how the addition of Heidelberg Materials to your portfolios can decrease your overall portfolio volatility.