MP Materials Shares Owned By Institutions vs. Operating Margin

MP Stock  USD 19.37  0.08  0.41%   
Based on MP Materials' profitability indicators, MP Materials' profitability may be sliding down. It has an above-average likelihood of reporting lower numbers next quarter. Profitability indicators assess MP Materials' ability to earn profits and add value for shareholders. At this time, MP Materials' Days Sales Outstanding is relatively stable compared to the past year. As of 12/13/2024, Sales General And Administrative To Revenue is likely to grow to 0.20, while Operating Cash Flow Sales Ratio is likely to drop 0.20. At this time, MP Materials' Net Income Per Share is relatively stable compared to the past year. As of 12/13/2024, Income Quality is likely to grow to 2.71, while Income Before Tax is likely to drop slightly above 31.4 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.310.4144
Way Down
Slightly volatile
For MP Materials profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MP Materials to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MP Materials Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MP Materials's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MP Materials Corp over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
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 MP Materials. If investors know MP Materials 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 MP Materials 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
(0.56)
Earnings Share
(0.52)
Revenue Per Share
1.08
Quarterly Revenue Growth
0.198
Return On Assets
(0.04)
The market value of MP Materials Corp is measured differently than its book value, which is the value of MP Materials that is recorded on the company's balance sheet. Investors also form their own opinion of MP Materials' value that differs from its market value or its book value, called intrinsic value, which is MP Materials' 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 MP Materials' market value can be influenced by many factors that don't directly affect MP Materials' 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 MP Materials' value and its price as these two are different measures arrived at by different means. Investors typically determine if MP Materials is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MP Materials' 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.

MP Materials Corp Operating Margin vs. Shares Owned By Institutions Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining MP Materials's current stock value. Our valuation model uses many indicators to compare MP Materials value to that of its competitors to determine the firm's financial worth.
MP Materials Corp is regarded fourth in shares owned by institutions category among its peers. It is rated below average in operating margin category among its peers . At this time, MP Materials' Operating Profit Margin is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value MP Materials 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.

MP Materials 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.

MP Materials

Shares Held by Institutions

 = 

Funds and Banks

+

Firms

 = 
66.30 %
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.

MP Materials

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(0.60) %
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.

MP Materials Operating Margin Comparison

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

MP Materials Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in MP Materials, profitability is also one of the essential criteria for including it into their portfolios because, without profit, MP Materials will eventually generate negative long term returns. The profitability progress is the general direction of MP Materials' change in net profit over the period of time. It can combine multiple indicators of MP Materials, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income145 K152.2 K
Net Income Applicable To Common Shares332.4 M349 M
Income Tax Expense8.8 M12.5 M
Net Interest Income-5.5 M-5.8 M
Interest Income10.2 M10.8 M
Operating Income22.3 M21.2 M
Net Income From Continuing Ops107.6 M110.7 M
Income Before Tax33.1 M31.4 M
Total Other Income Expense Net10.8 M11.3 M
Net Income24.3 M23.1 M
Non Operating Income Net Other4.3 M2.2 M
Change To Netincome30.4 M31.9 M
Net Income Per Share 0.14  0.26 
Income Quality 2.58  2.71 
Net Income Per E B T 0.73  0.91 

MP Materials Profitability Driver Comparison

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

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

MP Materials Pair Trading

MP Materials Corp Pair Trading Analysis

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

In addition to having MP Materials 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?

Run Warren Buffett Holdings Thematic Idea Now

Warren Buffett Holdings
Warren Buffett Holdings Theme
A long-term portfolio of publicly-traded stocks on US exchanges that are owned by Warren Buffett's holding company Berkshire Hathaway. The Warren Buffett Holdings theme has 45 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 Warren Buffett Holdings Theme or any other thematic opportunities.
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Additional Tools for MP Materials Stock Analysis

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