Mekonomen Shares Owned By Institutions vs. Operating Margin

MEKO Stock  SEK 136.60  0.60  0.44%   
Considering Mekonomen's profitability and operating efficiency indicators, Mekonomen AB may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Mekonomen's ability to earn profits and add value for shareholders.
For Mekonomen profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Mekonomen to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Mekonomen AB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Mekonomen's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Mekonomen AB 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 Mekonomen's value and its price as these two are different measures arrived at by different means. Investors typically determine if Mekonomen is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mekonomen'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.

Mekonomen AB Operating Margin vs. Shares Owned By Institutions Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Mekonomen's current stock value. Our valuation model uses many indicators to compare Mekonomen value to that of its competitors to determine the firm's financial worth.
Mekonomen AB is regarded second in shares owned by institutions category among its peers. It is considered to be number one stock in operating margin category among its peers . The ratio of Shares Owned By Institutions to Operating Margin for Mekonomen AB is about  812.65 . 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 Mekonomen's earnings, one of the primary drivers of an investment's value.

Mekonomen Operating Margin vs. Shares Owned By Institutions

Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.

Mekonomen

Shares Held by Institutions

 = 

Funds and Banks

+

Firms

 = 
46.89 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
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.

Mekonomen

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.06 %
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.

Mekonomen Operating Margin Comparison

Mekonomen is currently under evaluation in operating margin category among its peers.

Mekonomen Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Mekonomen, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Mekonomen will eventually generate negative long term returns. The profitability progress is the general direction of Mekonomen's change in net profit over the period of time. It can combine multiple indicators of Mekonomen, 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.
Mekonomen AB operates a chain of car service stores in Sweden, Norway, Denmark, Poland, and Finland. The company was founded in 1973 and is headquartered in Stockholm, Sweden. Mekonomen operates under Auto Parts And Components classification in Sweden and is traded on Stockholm Stock Exchange. It employs 4958 people.

Mekonomen Profitability Driver Comparison

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

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

Mekonomen Pair Trading

Mekonomen AB Pair Trading Analysis

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

In addition to having Mekonomen 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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Millennials Best
Millennials Best Theme
Companies or funds that provide products or services that appeal to the generation of millennials and that are expected to experience growth in the next 5 years. The millennial generation usually refers to the demographic population that were born between 1980 to 2000. The Millennials Best theme has 77 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 Millennials Best Theme or any other thematic opportunities.
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Additional Tools for Mekonomen Stock Analysis

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