Lancashire Holdings Price To Book vs. Return On Equity
| LCSHF Stock | USD 8.31 0.60 7.78% |
For Lancashire Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lancashire Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lancashire Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lancashire Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lancashire Holdings over time as well as its relative position and ranking within its peers.
Lancashire |
Lancashire Holdings Return On Equity vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lancashire Holdings's current stock value. Our valuation model uses many indicators to compare Lancashire Holdings value to that of its competitors to determine the firm's financial worth. Lancashire Holdings is currently regarded as number one stock in price to book category among its peers. It also is currently regarded as number one stock in return on equity category among its peers . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lancashire Holdings' earnings, one of the primary drivers of an investment's value.Lancashire Return On Equity vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Lancashire Holdings |
| = | 1.31 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.
Lancashire Holdings |
| = | -0.0025 |
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.
Lancashire Return On Equity Comparison
Lancashire Holdings is currently under evaluation in return on equity category among its peers.
Lancashire Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lancashire Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lancashire Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Lancashire Holdings' change in net profit over the period of time. It can combine multiple indicators of Lancashire Holdings, 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.
Lancashire Holdings Limited, together with its subsidiaries, provides specialty insurance and reinsurance products in London, Bermuda, and Australia. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda. Lancashire Holdings operates under InsuranceSpecialty classification in the United States and is traded on OTC Exchange. It employs 306 people.
Lancashire Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lancashire Holdings. 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 Lancashire Holdings 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 Lancashire Holdings' important profitability drivers and their relationship over time.
Use Lancashire Holdings 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 Lancashire Holdings 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 Lancashire Holdings will appreciate offsetting losses from the drop in the long position's value.Lancashire Holdings Pair Trading
Lancashire Holdings Pair Trading Analysis
The ability to find closely correlated positions to Lancashire Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lancashire Holdings 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 Lancashire Holdings - 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 Lancashire Holdings to buy it.
The correlation of Lancashire Holdings 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 Lancashire Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lancashire Holdings 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 Lancashire Holdings 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 Lancashire Holdings position
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Other Information on Investing in Lancashire Pink Sheet
To fully project Lancashire Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lancashire Holdings 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 Lancashire Holdings' income statement, its balance sheet, and the statement of cash flows.