Genomma Lab Operating Margin vs. Price To Earning

LABB Stock  MXN 25.78  0.27  1.06%   
Based on the measurements of profitability obtained from Genomma Lab's financial statements, Genomma Lab Internacional 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 Genomma Lab's ability to earn profits and add value for shareholders.
For Genomma Lab profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Genomma Lab to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Genomma Lab Internacional utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Genomma Lab's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Genomma Lab Internacional over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between Genomma Lab's value and its price as these two are different measures arrived at by different means. Investors typically determine if Genomma Lab is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Genomma Lab'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.

Genomma Lab Internacional Price To Earning vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Genomma Lab's current stock value. Our valuation model uses many indicators to compare Genomma Lab value to that of its competitors to determine the firm's financial worth.
Genomma Lab Internacional is currently regarded as number one stock in operating margin category among its peers. It also is currently regarded as number one stock in price to earning category among its peers reporting about  68.81  of Price To Earning per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Genomma Lab by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Genomma Lab'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.

Genomma Price To Earning 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.

Genomma Lab

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.20 %
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.
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.

Genomma Lab

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
13.61 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.

Genomma Price To Earning Comparison

Genomma Lab is currently under evaluation in price to earning category among its peers.

Genomma Lab Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Genomma Lab, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Genomma Lab will eventually generate negative long term returns. The profitability progress is the general direction of Genomma Lab's change in net profit over the period of time. It can combine multiple indicators of Genomma Lab, 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.
Genomma Lab Internacional, S.A.B. de C.V. together with its subsidiaries, engages in the development, marketing, and sale of over-the-counter pharmaceutical and personal care products in Mexico, the United States, and Latin America. Genomma Lab Internacional, S.A.B. de C.V. was founded in 1996 and is based in Mexico City, Mexico. GENOMMA LAB operates under Drug ManufacturersSpecialty Generic classification in Mexico and is traded on Mexico Stock Exchange. It employs 1451 people.

Genomma Profitability Driver Comparison

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

Use Genomma Lab 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 Genomma Lab 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 Genomma Lab will appreciate offsetting losses from the drop in the long position's value.

Genomma Lab Pair Trading

Genomma Lab Internacional Pair Trading Analysis

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

In addition to having Genomma Lab 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 Healthcare Thematic Idea Now

Healthcare
Healthcare Theme
Companies that provide healthcare goods and services including hospitals, health maintenance organizations, HMOs, or medical aid manufacturers. The Healthcare theme has 20 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 Healthcare Theme or any other thematic opportunities.
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Additional Tools for Genomma Stock Analysis

When running Genomma Lab's price analysis, check to measure Genomma Lab's 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 Genomma Lab is operating at the current time. Most of Genomma Lab's value examination focuses on studying past and present price action to predict the probability of Genomma Lab's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Genomma Lab's price. Additionally, you may evaluate how the addition of Genomma Lab to your portfolios can decrease your overall portfolio volatility.