MRF Current Valuation vs. Profit Margin

MRF Stock   126,841  1,256  1.00%   
Considering the key profitability indicators obtained from MRF's historical financial statements, MRF Limited may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess MRF's ability to earn profits and add value for shareholders.
For MRF profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MRF to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MRF Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MRF's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MRF Limited 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 MRF's value and its price as these two are different measures arrived at by different means. Investors typically determine if MRF is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MRF'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.

MRF Limited Profit Margin vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining MRF's current stock value. Our valuation model uses many indicators to compare MRF value to that of its competitors to determine the firm's financial worth.
MRF Limited is rated top company in current valuation category among its peers. It is regarded fifth in profit margin category among its peers . The ratio of Current Valuation to Profit Margin for MRF Limited is about  7,232,557,939,098 . 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 MRF's earnings, one of the primary drivers of an investment's value.

MRF Current Valuation vs. Competition

MRF Limited is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Discretionary industry is now estimated at about 1.46 Trillion. MRF totals roughly 529.42 Billion in current valuation claiming about 36% of stocks in Consumer Discretionary industry.

MRF Profit Margin vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

MRF

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
529.42 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
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.

MRF

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.07 %
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.

MRF Profit Margin Comparison

MRF is currently under evaluation in profit margin category among its peers.

MRF Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in MRF, profitability is also one of the essential criteria for including it into their portfolios because, without profit, MRF will eventually generate negative long term returns. The profitability progress is the general direction of MRF's change in net profit over the period of time. It can combine multiple indicators of MRF, 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 Income-955.2 M-907.4 M
Operating Income28.2 B14.2 B
Income Before Tax27.9 B29.3 B
Total Other Income Expense Net-361.7 M-379.8 M
Net Income20.8 B12 B
Income Tax Expense7.1 B3.7 B
Net Income Applicable To Common Shares8.8 B9.3 B
Net Income From Continuing Ops20.8 B13.4 B
Interest IncomeBB
Net Interest Income-3.5 B-3.7 B
Change To Netincome879.8 M609.8 M

MRF Profitability Driver Comparison

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

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

MRF Pair Trading

MRF Limited Pair Trading Analysis

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

In addition to having MRF 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 Railroads Thematic Idea Now

Railroads
Railroads Theme
Companies involved in manufacturing and maintenance of freight railroads and passenger trains as well as providing railroad services to public. The Railroads theme has 38 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 Railroads Theme or any other thematic opportunities.
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Other Information on Investing in MRF Stock

To fully project MRF's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of MRF Limited 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 MRF's income statement, its balance sheet, and the statement of cash flows.
Potential MRF investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although MRF investors may work on each financial statement separately, they are all related. The changes in MRF's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on MRF'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.