MGP Ingredients Return On Equity vs. Net Income

M1I Stock  EUR 36.60  0.20  0.55%   
Based on MGP Ingredients' profitability indicators, MGP Ingredients may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in February. Profitability indicators assess MGP Ingredients' ability to earn profits and add value for shareholders.
For MGP Ingredients profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MGP Ingredients to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MGP Ingredients utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MGP Ingredients's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MGP Ingredients over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
For more detail on how to invest in MGP Stock please use our How to Invest in MGP Ingredients guide.
Please note, there is a significant difference between MGP Ingredients' value and its price as these two are different measures arrived at by different means. Investors typically determine if MGP Ingredients is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MGP Ingredients' 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.

MGP Ingredients Net Income vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining MGP Ingredients's current stock value. Our valuation model uses many indicators to compare MGP Ingredients value to that of its competitors to determine the firm's financial worth.
MGP Ingredients is considered to be number one stock in return on equity category among its peers. It also is considered to be number one stock in net income category among its peers making up about  698,544,990  of Net Income per Return On Equity. 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 MGP Ingredients' earnings, one of the primary drivers of an investment's value.

MGP Net Income 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.

MGP Ingredients

Return On Equity

 = 

Net Income

Total Equity

 = 
0.16
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.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

MGP Ingredients

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
109.46 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

MGP Net Income Comparison

MGP Ingredients is currently under evaluation in net income category among its peers.

MGP Ingredients Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in MGP Ingredients, profitability is also one of the essential criteria for including it into their portfolios because, without profit, MGP Ingredients will eventually generate negative long term returns. The profitability progress is the general direction of MGP Ingredients' change in net profit over the period of time. It can combine multiple indicators of MGP Ingredients, 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.
MGP Ingredients, Inc., together with its subsidiaries, produces and supplies distilled spirits, and specialty wheat proteins and starch food ingredients. MGP Ingredients, Inc. was founded in 1941 and is headquartered in Atchison, Kansas. MGP Ingredients operates under Packaged Foods classification in Germany and is traded on Frankfurt Stock Exchange. It employs 332 people.

MGP Profitability Driver Comparison

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

Use MGP Ingredients 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 MGP Ingredients 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 MGP Ingredients will appreciate offsetting losses from the drop in the long position's value.

MGP Ingredients Pair Trading

MGP Ingredients Pair Trading Analysis

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

In addition to having MGP Ingredients 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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Social Domain
Social Domain Theme
New or established large and mid-sized companies that are involved in the social media industry, including entities that provide web-based or mobile media applications and services across across large segment of population in multiple geographical areas. The Social Domain theme has 26 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 Social Domain Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in MGP Stock

When determining whether MGP Ingredients offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of MGP Ingredients' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Mgp Ingredients Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Mgp Ingredients Stock:
Check out Correlation Analysis.
For more detail on how to invest in MGP Stock please use our How to Invest in MGP Ingredients guide.
You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
To fully project MGP Ingredients' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of MGP Ingredients 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 MGP Ingredients' income statement, its balance sheet, and the statement of cash flows.
Potential MGP Ingredients investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although MGP Ingredients investors may work on each financial statement separately, they are all related. The changes in MGP Ingredients's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on MGP Ingredients'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.