Considering Labrador Iron's profitability and operating efficiency indicators, Labrador Iron Ore may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess Labrador Iron's ability to earn profits and add value for shareholders.
For Labrador Iron profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Labrador Iron to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Labrador Iron Ore utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Labrador Iron's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Labrador Iron Ore over time as well as its relative position and ranking within its peers.
Please note, there is a significant difference between Labrador Iron's value and its price as these two are different measures arrived at by different means. Investors typically determine if Labrador Iron is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Labrador Iron'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.
Labrador Iron Ore Market Capitalization vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Labrador Iron's current stock value. Our valuation model uses many indicators to compare Labrador Iron value to that of its competitors to determine the firm's financial worth.
Labrador Iron Ore is rated second overall in price to sales category among its peers. It also is rated second overall in market capitalization category among its peers creating about 205,514,378 of Market Capitalization per Price To Sales. At this time, Labrador Iron's Price To Sales Ratio is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Labrador Iron by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Labrador Iron'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.
Labrador Market Capitalization vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Labrador Iron
P/S
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MV Per Share
Revenue Per Share
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9.30 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
Labrador Iron
Market Cap
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Shares Outstanding
X
Share Price
=
1.91 B
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
Labrador Market Capitalization vs Competition
Labrador Iron Ore is rated second overall in market capitalization category among its peers. Market capitalization of Materials industry is now estimated at about 6.52 Billion. Labrador Iron totals roughly 1.91 Billion in market capitalization claiming about 29% of all equities under Materials industry.
The most important aspect of a successful company is its ability to generate a profit. For investors in Labrador Iron, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Labrador Iron will eventually generate negative long term returns. The profitability progress is the general direction of Labrador Iron's change in net profit over the period of time. It can combine multiple indicators of Labrador Iron, 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 Labrador Iron. 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 Labrador Iron 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 Labrador Iron'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 Labrador Iron 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 Labrador Iron will appreciate offsetting losses from the drop in the long position's value.
Labrador Iron Pair Trading
Labrador Iron Ore Pair Trading Analysis
The ability to find closely correlated positions to Labrador Iron could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Labrador Iron 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 Labrador Iron - 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 Labrador Iron Ore to buy it.
The correlation of Labrador Iron 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 Labrador Iron moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Labrador Iron Ore 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 Labrador Iron 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 Labrador Iron position
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To fully project Labrador Iron's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Labrador Iron Ore 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 Labrador Iron's income statement, its balance sheet, and the statement of cash flows.
Potential Labrador Iron investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Labrador Iron investors may work on each financial statement separately, they are all related. The changes in Labrador Iron's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Labrador Iron'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.
