LT Foods Operating Margin vs. Current Valuation

LTFOODS Stock   420.45  6.95  1.68%   
Based on LT Foods' profitability indicators, LT Foods Limited may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess LT Foods' ability to earn profits and add value for shareholders.
For LT Foods profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LT Foods to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LT Foods Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LT Foods's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LT Foods Limited 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 LT Foods' value and its price as these two are different measures arrived at by different means. Investors typically determine if LT Foods is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LT Foods' 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.

LT Foods Limited Current Valuation vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining LT Foods's current stock value. Our valuation model uses many indicators to compare LT Foods value to that of its competitors to determine the firm's financial worth.
LT Foods Limited is currently regarded as number one stock in operating margin category among its peers. It also is considered the number one company in current valuation category among its peers reporting about  1,546,062,573,364  of Current Valuation per Operating Margin. 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 LT Foods' earnings, one of the primary drivers of an investment's value.

LTFOODS Current Valuation 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.

LT Foods

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.1 %
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.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

LT Foods

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
152.6 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

LTFOODS Current Valuation vs Competition

LT Foods Limited is considered the number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Staples industry is now estimated at about 689.96 Billion. LT Foods totals roughly 152.6 Billion in current valuation claiming about 22% of stocks in Consumer Staples industry.

LT Foods Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in LT Foods, profitability is also one of the essential criteria for including it into their portfolios because, without profit, LT Foods will eventually generate negative long term returns. The profitability progress is the general direction of LT Foods' change in net profit over the period of time. It can combine multiple indicators of LT Foods, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income1.3 B1.4 B
Operating Income19.2 B20.1 B
Income Before TaxB8.4 B
Total Other Income Expense Net-11.2 B-10.6 B
Net IncomeB8.4 B
Income Tax ExpenseB2.1 B
Net Income From Continuing OpsB6.3 B
Net Income Applicable To Common Shares4.6 B4.9 B
Interest Income488.1 M814.9 M
Net Interest Income-829.7 M-871.1 M
Change To Netincome955.4 M1.2 B

LTFOODS Profitability Driver Comparison

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

Use LT Foods 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 LT Foods 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 LT Foods will appreciate offsetting losses from the drop in the long position's value.

LT Foods Pair Trading

LT Foods Limited Pair Trading Analysis

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

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Government Funds Theme
Funds or Etfs that invest in fixed income securities issued by national government to finance government spending or to facilitate Federal Reserve monetary policies. The Government Funds theme has 39 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 Government Funds Theme or any other thematic opportunities.
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Additional Tools for LTFOODS Stock Analysis

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