KCAP Financial Return On Equity vs. Net Income
Taking into consideration KCAP Financial's profitability measurements, KCAP Financial SR 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 KCAP Financial's ability to earn profits and add value for shareholders.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
Please note, there is a significant difference between KCAP Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if KCAP Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, KCAP 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.
For KCAP Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of KCAP Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well KCAP Financial SR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between KCAP Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of KCAP Financial SR over time as well as its relative position and ranking within its peers.
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KCAP Financial SR Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining KCAP Financial's current stock value. Our valuation model uses many indicators to compare KCAP Financial value to that of its competitors to determine the firm's financial worth. KCAP Financial SR is currently regarded as number one stock in return on equity category among its peers. It is rated below average in net income category among its peers making up about 1,850,498 of Net Income per Return On Equity. Comparative valuation analysis is a catch-all technique that is used if you cannot value KCAP Financial by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.KCAP Net Income vs. Return On Equity
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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| = | 3.01 |
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.
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.
KCAP Financial |
| = | 5.57 M |
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.
KCAP Net Income Comparison
KCAP Financial is currently under evaluation in net income category among its peers.
KCAP Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in KCAP Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, KCAP Financial will eventually generate negative long term returns. The profitability progress is the general direction of KCAP Financial's change in net profit over the period of time. It can combine multiple indicators of KCAP 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.
KCAP Financial, Inc. is a business development company specializing in investments in debt securities portfolio, asset manager affiliates, and CLO fund securities. KCAP Financial, Inc. was founded in August 2006 and is based in New York, New York. KCAP Financial is traded on New York Stock Exchange in USA.
KCAP Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on KCAP 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 KCAP 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 KCAP Financial's important profitability drivers and their relationship over time.
Use KCAP Financial 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 KCAP 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 KCAP Financial will appreciate offsetting losses from the drop in the long position's value.KCAP Financial Pair Trading
KCAP Financial SR Pair Trading Analysis
The ability to find closely correlated positions to Cognizant Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cognizant Technology 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 Cognizant Technology - 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 Cognizant Technology Solutions to buy it.
The correlation of Cognizant Technology 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 Cognizant Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cognizant Technology 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 Cognizant Technology 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 KCAP Financial position
In addition to having KCAP 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 Absolute Returns ETFs Thematic Idea Now
Absolute Returns ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Absolute Returns ETFs theme has 45 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 Absolute Returns ETFs Theme or any other thematic opportunities.
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Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Consideration for investing in KCAP Stock
If you are still planning to invest in KCAP Financial SR check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the KCAP Financial's history and understand the potential risks before investing.
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