Lifezone Metals Profitability Analysis
| LZM Stock | 6.95 0.21 3.12% |
For Lifezone Metals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lifezone Metals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lifezone Metals Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lifezone Metals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lifezone Metals Limited over time as well as its relative position and ranking within its peers.
Lifezone |
Is Diversified Metals & Mining space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lifezone Metals. If investors know Lifezone will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lifezone Metals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Lifezone Metals is measured differently than its book value, which is the value of Lifezone that is recorded on the company's balance sheet. Investors also form their own opinion of Lifezone Metals' value that differs from its market value or its book value, called intrinsic value, which is Lifezone Metals' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lifezone Metals' market value can be influenced by many factors that don't directly affect Lifezone Metals' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lifezone Metals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Lifezone Metals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lifezone Metals' 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.
Lifezone Metals Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lifezone Metals's current stock value. Our valuation model uses many indicators to compare Lifezone Metals value to that of its competitors to determine the firm's financial worth. Lifezone Metals Limited is currently regarded as number one stock in return on equity category among its peers. It also is currently regarded as number one stock in return on asset category among its peers . Comparative valuation analysis is a catch-all technique that is used if you cannot value Lifezone Metals by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Lifezone Return On Asset vs. Return On Equity
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.
Lifezone Metals |
| = | -3.99 |
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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Lifezone Metals |
| = | -1.33 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Lifezone Return On Asset Comparison
Lifezone Metals is currently under evaluation in return on asset category among its peers.
Lifezone Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lifezone Metals. 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 Lifezone Metals 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 Lifezone Metals' important profitability drivers and their relationship over time.
Lifezone Metals Profitability Trends
Lifezone Metals profitability trend refers to the progression of profit or loss within a business. An upward trend means that Lifezone Metals' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Lifezone Metals' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Use Lifezone Metals 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 Lifezone Metals 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 Lifezone Metals will appreciate offsetting losses from the drop in the long position's value.Lifezone Metals Pair Trading
Lifezone Metals Limited Pair Trading Analysis
The ability to find closely correlated positions to Lifezone Metals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lifezone Metals 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 Lifezone Metals - 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 Lifezone Metals Limited to buy it.
The correlation of Lifezone Metals 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 Lifezone Metals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lifezone Metals 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 Lifezone Metals 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 Lifezone Metals position
In addition to having Lifezone Metals 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?
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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 Recycling Theme or any other thematic opportunities.
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Check out Correlation Analysis. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
To fully project Lifezone Metals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lifezone Metals 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 Lifezone Metals' income statement, its balance sheet, and the statement of cash flows.