Kapsch Traffic Return On Equity vs. Price To Earning
| KTCG Stock | EUR 6.18 0.06 0.98% |
For Kapsch Traffic profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Kapsch Traffic to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Kapsch Traffic utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Kapsch Traffic's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Kapsch Traffic over time as well as its relative position and ranking within its peers.
Kapsch |
Kapsch Traffic Price To Earning vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Kapsch Traffic's current stock value. Our valuation model uses many indicators to compare Kapsch Traffic value to that of its competitors to determine the firm's financial worth. Kapsch Traffic is currently regarded as number one stock in return on equity category among its peers. It also is currently regarded as number one stock in price to earning category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Kapsch Traffic by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Kapsch Traffic'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.Kapsch Price To Earning 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.
Kapsch Traffic |
| = | -0.13 |
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.
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.
Kapsch Traffic |
| = | 8.86 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.
Kapsch Traffic Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Kapsch Traffic, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Kapsch Traffic will eventually generate negative long term returns. The profitability progress is the general direction of Kapsch Traffic's change in net profit over the period of time. It can combine multiple indicators of Kapsch Traffic, 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.
Kapsch TrafficCom AG provides technologies, solutions, and services for intelligent transportation systems . Kapsch TrafficCom AG is a subsidiary of KAPSCH-Group Beteiligungs GmbH. KAPSCH TRAFFICCOM operates under Information Technology Services classification in Austria and is traded on Vienna Stock Exchange. It employs 4657 people.
Kapsch Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Kapsch Traffic. 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 Kapsch Traffic 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 Kapsch Traffic's important profitability drivers and their relationship over time.
Use Kapsch Traffic 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 Kapsch Traffic 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 Kapsch Traffic will appreciate offsetting losses from the drop in the long position's value.Kapsch Traffic Pair Trading
Kapsch Traffic Pair Trading Analysis
The ability to find closely correlated positions to Kapsch Traffic could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Kapsch Traffic 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 Kapsch Traffic - 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 Kapsch Traffic to buy it.
The correlation of Kapsch Traffic 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 Kapsch Traffic moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Kapsch Traffic 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 Kapsch Traffic 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 Kapsch Traffic position
In addition to having Kapsch Traffic 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 Macroaxis Index Thematic Idea Now
Macroaxis Index
An experimental equal-weighted index theme of selected equities generated based on Macroaxis rating and scoring system. The Macroaxis Index theme has 52 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 Macroaxis Index Theme or any other thematic opportunities.
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Other Information on Investing in Kapsch Stock
To fully project Kapsch Traffic's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Kapsch Traffic 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 Kapsch Traffic's income statement, its balance sheet, and the statement of cash flows.