Taking into consideration IA Financial's profitability measurements, iA Financial is yielding more profit at the present time then in previous quarter. It has a moderate chance of reporting better profitability numbers in April. Profitability indicators assess IA Financial's ability to earn profits and add value for shareholders.
For IA Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of IA Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well iA Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between IA Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of iA Financial over time as well as its relative position and ranking within its peers.
Please note, there is a significant difference between IA Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if IA Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, IA Financial'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.
iA Financial Return On Asset vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining IA Financial's current stock value. Our valuation model uses many indicators to compare IA Financial value to that of its competitors to determine the firm's financial worth.
iA Financial is rated third overall in operating margin category among its peers. It is rated fourth overall in return on asset category among its peers reporting about 0.03 of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for iA Financial is roughly 33.40 . At this time, IA Financial's Operating Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value IA Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for IA Financial'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.
IAG Return On Asset 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.
IA Financial
Operating Margin
=
Operating Income
Revenue
X
100
=
0.27 %
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 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.
IA Financial
Return On Asset
=
Net Income
Total Assets
=
0.008
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.
IAG Return On Asset Comparison
IA Financial is currently under evaluation in return on asset category among its peers.
IA Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in IA Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, IA Financial will eventually generate negative long term returns. The profitability progress is the general direction of IA Financial's change in net profit over the period of time. It can combine multiple indicators of IA Financial, 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.
Profitability drivers are factors that can directly affect your investment outlook on IA Financial. 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 IA Financial 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 IA Financial's important profitability drivers and their relationship over time.
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 IA Financial 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 IA Financial will appreciate offsetting losses from the drop in the long position's value.
IA Financial Pair Trading
iA Financial Pair Trading Analysis
The ability to find closely correlated positions to IA Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace IA Financial 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 IA Financial - 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 iA Financial to buy it.
The correlation of IA Financial 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 IA Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if iA Financial 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 IA Financial 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 IA Financial position
In addition to having IA Financial 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 Insurance Providers Thematic Idea Now
Insurance Providers
Companies providing all types of insurance and insurance services. The Insurance Providers theme has 44 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 Insurance Providers Theme or any other thematic opportunities.
To fully project IA Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of iA Financial 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 IA Financial's income statement, its balance sheet, and the statement of cash flows.
Potential IA Financial investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although IA Financial investors may work on each financial statement separately, they are all related. The changes in IA Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on IA Financial'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.
