Considering Linamar's profitability and operating efficiency indicators, Linamar is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Linamar's ability to earn profits and add value for shareholders.
Linamar Operating Profit Margin
0.0952
At this time, Linamar's Days Sales Outstanding is very stable compared to the past year. As of the 4th of December 2024, EV To Sales is likely to grow to 0.99, while Price To Sales Ratio is likely to drop 0.38. At this time, Linamar's Net Income Per Share is very stable compared to the past year.
For Linamar profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Linamar to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Linamar utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Linamar's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Linamar over time as well as its relative position and ranking within its peers.
Please note, there is a significant difference between Linamar's value and its price as these two are different measures arrived at by different means. Investors typically determine if Linamar is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Linamar'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.
Linamar Shares Owned By Institutions vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Linamar's current stock value. Our valuation model uses many indicators to compare Linamar value to that of its competitors to determine the firm's financial worth.
Linamar is currently regarded as number one stock in operating margin category among its peers. It is rated second overall in shares owned by institutions category among its peers producing about 227.91 of Shares Owned By Institutions per Operating Margin. At this time, Linamar's Operating Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Linamar by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Linamar'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.
Linamar Shares Owned By Institutions 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.
Linamar
Operating Margin
=
Operating Income
Revenue
X
100
=
0.09 %
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.
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
Linamar
Shares Held by Institutions
=
Funds and Banks
+
Firms
=
19.76 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Linamar Shares Owned By Institutions Comparison
Linamar is currently under evaluation in shares owned by institutions category among its peers.
Linamar Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Linamar, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Linamar will eventually generate negative long term returns. The profitability progress is the general direction of Linamar's change in net profit over the period of time. It can combine multiple indicators of Linamar, 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 Linamar. 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 Linamar 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 Linamar'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 Linamar 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 Linamar will appreciate offsetting losses from the drop in the long position's value.
Linamar Pair Trading
Linamar Pair Trading Analysis
The ability to find closely correlated positions to Linamar could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Linamar 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 Linamar - 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 Linamar to buy it.
The correlation of Linamar 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 Linamar moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Linamar 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 Linamar 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 Linamar position
In addition to having Linamar 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 Millennials Best Thematic Idea Now
Millennials Best
Companies or funds that provide products or services that appeal to the generation of millennials and that are expected to experience growth in the next 5 years. The millennial generation usually refers to the demographic population that were born between 1980 to 2000. The Millennials Best theme has 77 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 Millennials Best Theme or any other thematic opportunities.
To fully project Linamar's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Linamar 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 Linamar's income statement, its balance sheet, and the statement of cash flows.
Potential Linamar investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Linamar investors may work on each financial statement separately, they are all related. The changes in Linamar's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Linamar'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.
