Montrose Environmental Return On Equity vs. Price To Book
| MEG Stock | USD 16.50 0.53 3.11% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (0.07) | Current Value (0.07) | Quarterly Volatility 0.0490827 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.26 | 0.385 |
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For Montrose Environmental profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Montrose Environmental to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Montrose Environmental Grp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Montrose Environmental's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Montrose Environmental Grp over time as well as its relative position and ranking within its peers.
Montrose |
Montrose Environmental's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Environmental & Facilities Services 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 Montrose Environmental. If investors know Montrose 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 Montrose Environmental listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.48) | Revenue Per Share 21.013 | Quarterly Revenue Growth 0.064 | Return On Assets (0.01) | Return On Equity (0.07) |
The market value of Montrose Environmental is measured differently than its book value, which is the value of Montrose that is recorded on the company's balance sheet. Investors also form their own opinion of Montrose Environmental's value that differs from its market value or its book value, called intrinsic value, which is Montrose Environmental'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 Montrose Environmental's market value can be influenced by many factors that don't directly affect Montrose Environmental'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 Montrose Environmental's value and its price as these two are different measures arrived at by different means. Investors typically determine if Montrose Environmental is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Montrose Environmental'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.
Montrose Environmental Price To Book vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Montrose Environmental's current stock value. Our valuation model uses many indicators to compare Montrose Environmental value to that of its competitors to determine the firm's financial worth. Montrose Environmental Grp is rated below average in return on equity category among its peers. It also is rated below average in price to book category among its peers . At this time, Montrose Environmental's Return On Equity is most likely to increase slightly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Montrose Environmental 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.Montrose Price To Book 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.
Montrose Environmental |
| = | -0.0704 |
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.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Montrose Environmental |
| = | 1.30 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Montrose Price To Book Comparison
Montrose Environmental is currently under evaluation in price to book category among its peers.
Montrose Environmental Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Montrose Environmental, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Montrose Environmental will eventually generate negative long term returns. The profitability progress is the general direction of Montrose Environmental's change in net profit over the period of time. It can combine multiple indicators of Montrose Environmental, 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 | -223 K | -234.2 K | |
| Operating Income | -28.4 M | -27 M | |
| Income Before Tax | -31.8 M | -30.2 M | |
| Net Loss | -43.4 M | -45.6 M | |
| Net Loss | -30.9 M | -32.4 M | |
| Income Tax Expense | -980 K | -931 K | |
| Net Loss | -40.2 M | -42.2 M | |
| Non Operating Income Net Other | -105.3 M | -100.1 M | |
| Total Other Income Expense Net | -3.4 M | -3.6 M | |
| Net Interest Income | -6.7 M | -7.1 M | |
| Interest Income | 4.7 M | 6.9 M | |
| Change To Netincome | 34.4 M | 38 M | |
| Net Loss | (1.03) | (1.08) | |
| Income Quality | (1.82) | (1.72) | |
| Net Income Per E B T | 0.97 | 0.77 |
Montrose Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Montrose Environmental. 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 Montrose Environmental 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 Montrose Environmental's important profitability drivers and their relationship over time.
Use Montrose Environmental 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 Montrose Environmental 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 Montrose Environmental will appreciate offsetting losses from the drop in the long position's value.Montrose Environmental Pair Trading
Montrose Environmental Grp Pair Trading Analysis
The ability to find closely correlated positions to Montrose Environmental could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Montrose Environmental 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 Montrose Environmental - 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 Montrose Environmental Grp to buy it.
The correlation of Montrose Environmental 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 Montrose Environmental moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Montrose Environmental 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 Montrose Environmental 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 Montrose Environmental position
In addition to having Montrose Environmental 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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Check out Correlation Analysis. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
To fully project Montrose Environmental's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Montrose Environmental 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 Montrose Environmental's income statement, its balance sheet, and the statement of cash flows.