Matthews International Return On Equity vs. Profit Margin
| MATW Stock | USD 30.35 0.03 0.1% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (0.14) | Current Value (0.13) | Quarterly Volatility 0.12166927 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.43 | 0.295 |
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For Matthews International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Matthews International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Matthews International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Matthews International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Matthews International over time as well as its relative position and ranking within its peers.
Matthews |
Matthews International's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Commercial Services & Supplies 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 Matthews International. If investors know Matthews 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 Matthews International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.80) | Earnings Share (1.93) | Revenue Per Share 59.185 | Quarterly Revenue Growth (0.09) | Return On Assets 0.0257 |
The market value of Matthews International is measured differently than its book value, which is the value of Matthews that is recorded on the company's balance sheet. Investors also form their own opinion of Matthews International's value that differs from its market value or its book value, called intrinsic value, which is Matthews International's 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 Matthews International's market value can be influenced by many factors that don't directly affect Matthews International's 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 Matthews International's value and its price as these two are different measures arrived at by different means. Investors typically determine if Matthews International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Matthews International'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.
Matthews International Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Matthews International's current stock value. Our valuation model uses many indicators to compare Matthews International value to that of its competitors to determine the firm's financial worth. Matthews International is rated below average in return on equity category among its peers. It is rated below average in profit margin category among its peers fabricating about 0.28 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Matthews International is roughly 3.57 . At this time, Matthews International's Return On Equity is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Matthews International 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.Matthews Profit Margin 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.
Matthews International |
| = | 0.0511 |
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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Matthews International |
| = | 0.01 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Matthews Profit Margin Comparison
Matthews International is currently under evaluation in profit margin category among its peers.
Matthews International Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Matthews International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Matthews International will eventually generate negative long term returns. The profitability progress is the general direction of Matthews International's change in net profit over the period of time. It can combine multiple indicators of Matthews International, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -168.7 M | -160.3 M | |
| Operating Income | -12.3 M | -11.7 M | |
| Income Before Tax | -69.7 M | -66.2 M | |
| Total Other Income Expense Net | -57.3 M | -54.5 M | |
| Net Loss | -59.7 M | -56.7 M | |
| Income Tax Expense | -10 M | -9.5 M | |
| Net Loss | -89.8 M | -85.3 M | |
| Net Income From Continuing Ops | 35.2 M | 24.3 M | |
| Non Operating Income Net Other | -29.3 M | -27.8 M | |
| Interest Income | 45.4 M | 31.2 M | |
| Net Interest Income | -42.5 M | -44.6 M | |
| Change To Netincome | 140.6 M | 147.7 M | |
| Net Loss | (1.93) | (1.83) | |
| Income Quality | (1.33) | (1.26) | |
| Net Income Per E B T | 0.86 | 0.55 |
Matthews Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Matthews International. 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 Matthews International 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 Matthews International's important profitability drivers and their relationship over time.
Use Matthews International 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 Matthews International 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 Matthews International will appreciate offsetting losses from the drop in the long position's value.Matthews International Pair Trading
Matthews International Pair Trading Analysis
The ability to find closely correlated positions to Matthews International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Matthews International 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 Matthews International - 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 Matthews International to buy it.
The correlation of Matthews International 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 Matthews International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Matthews International 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 Matthews International 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 Matthews International position
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Additional Tools for Matthews Stock Analysis
When running Matthews International's price analysis, check to measure Matthews International's 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 Matthews International is operating at the current time. Most of Matthews International's value examination focuses on studying past and present price action to predict the probability of Matthews International's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Matthews International's price. Additionally, you may evaluate how the addition of Matthews International to your portfolios can decrease your overall portfolio volatility.