Thales SA Price To Earning vs. Net Income

HO Stock  EUR 141.95  1.05  0.73%   
Based on the key profitability measurements obtained from Thales SA's financial statements, Thales SA may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Thales SA's ability to earn profits and add value for shareholders.
For Thales SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Thales SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Thales SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Thales SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Thales SA over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Please note, there is a significant difference between Thales SA's value and its price as these two are different measures arrived at by different means. Investors typically determine if Thales SA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Thales SA'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.

Thales SA Net Income vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Thales SA's current stock value. Our valuation model uses many indicators to compare Thales SA value to that of its competitors to determine the firm's financial worth.
Thales SA is one of the top stocks in price to earning category among its peers. It also is one of the top stocks in net income category among its peers making up about  20,477,713  of Net Income per Price To Earning. Comparative valuation analysis is a catch-all model that can be used if you cannot value Thales SA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Thales SA's Stock. 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.

Thales Net Income 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.

Thales SA

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
53.17 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.
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.

Thales SA

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
1.09 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.

Thales Net Income Comparison

Thales SA is currently under evaluation in net income category among its peers.

Thales SA Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Thales SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Thales SA will eventually generate negative long term returns. The profitability progress is the general direction of Thales SA's change in net profit over the period of time. It can combine multiple indicators of Thales SA, 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.
Thales S.A. provides various solutions for civilian and military customers in the aeronautics, space, defense, security, ground transportation, and digital security markets worldwide. Thales S.A. was founded in 1893 and is headquartered in Courbevoie, France. THALES operates under Aerospace Defense classification in France and is traded on Paris Stock Exchange. It employs 76135 people.

Thales Profitability Driver Comparison

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

Use Thales SA 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 Thales SA 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 Thales SA will appreciate offsetting losses from the drop in the long position's value.

Thales SA Pair Trading

Thales SA Pair Trading Analysis

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

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Other Information on Investing in Thales Stock

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