Mettler Toledo Price To Earning vs. Return On Asset

MTD Stock  USD 1,259  7.68  0.61%   
Considering Mettler Toledo's profitability and operating efficiency indicators, Mettler Toledo's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Mettler Toledo's ability to earn profits and add value for shareholders. The current year's Price To Sales Ratio is expected to grow to 7.35. The current year's Days Sales Outstanding is expected to grow to 74.73. At present, Mettler Toledo's Net Income is projected to increase significantly based on the last few years of reporting. The current year's Net Income Applicable To Common Shares is expected to grow to about 1.1 B, whereas Income Before Tax is forecasted to decline to about 497.3 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.420.5916
Way Down
Pretty Stable
Operating Profit Margin0.320.3041
Sufficiently Up
Slightly volatile
For Mettler Toledo profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Mettler Toledo to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Mettler Toledo International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Mettler Toledo's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Mettler Toledo International over time as well as its relative position and ranking within its peers.
  

Mettler Toledo's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
Is Life Sciences Tools & 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 Mettler Toledo. If investors know Mettler 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 Mettler Toledo 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
0.081
Earnings Share
37.14
Revenue Per Share
176.102
Quarterly Revenue Growth
0.013
Return On Assets
0.2014
The market value of Mettler Toledo Inter is measured differently than its book value, which is the value of Mettler that is recorded on the company's balance sheet. Investors also form their own opinion of Mettler Toledo's value that differs from its market value or its book value, called intrinsic value, which is Mettler Toledo'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 Mettler Toledo's market value can be influenced by many factors that don't directly affect Mettler Toledo'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 Mettler Toledo's value and its price as these two are different measures arrived at by different means. Investors typically determine if Mettler Toledo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mettler Toledo'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.

Mettler Toledo Inter Return On Asset vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Mettler Toledo's current stock value. Our valuation model uses many indicators to compare Mettler Toledo value to that of its competitors to determine the firm's financial worth.
Mettler Toledo International is regarded fifth in price to earning category among its peers. It is regarded second in return on asset category among its peers reporting about  0.01  of Return On Asset per Price To Earning. The ratio of Price To Earning to Return On Asset for Mettler Toledo International is roughly  190.67 . The current year's Return On Assets is expected to grow to 0.25. Comparative valuation analysis is a catch-all technique that is used if you cannot value Mettler Toledo 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.

Mettler Return On Asset vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Mettler Toledo

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
38.40 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Mettler Toledo

Return On Asset

 = 

Net Income

Total Assets

 = 
0.2
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Mettler Return On Asset Comparison

Mettler Toledo is currently under evaluation in return on asset category among its peers.

Mettler Toledo Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Mettler Toledo, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Mettler Toledo will eventually generate negative long term returns. The profitability progress is the general direction of Mettler Toledo's change in net profit over the period of time. It can combine multiple indicators of Mettler Toledo, 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-319.8 M-303.8 M
Operating Income1.2 B1.2 B
Income Before Tax973.7 M497.3 M
Total Other Income Expense Net-178.2 M-169.3 M
Net Income788.8 M828.2 M
Income Tax Expense184.9 M96.9 M
Net Income Applicable To Common SharesB1.1 B
Net Income From Continuing Ops869.8 M529.4 M
Non Operating Income Net Other10.7 M11.3 M
Net Interest Income-74.5 M-70.8 M
Change To Netincome22.6 M12.2 M
Net Income Per Share 36.10  37.91 
Income Quality 1.22  0.91 
Net Income Per E B T 0.81  1.18 

Mettler Profitability Driver Comparison

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

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

Mettler Toledo Pair Trading

Mettler Toledo International Pair Trading Analysis

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

In addition to having Mettler Toledo 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.

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Companies specializing in advertising, marketing and advertising services. The Advertising theme has 37 constituents at this time.
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When determining whether Mettler Toledo Inter is a strong investment it is important to analyze Mettler Toledo's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Mettler Toledo's future performance. For an informed investment choice regarding Mettler Stock, refer to the following important reports:
Check out Correlation Analysis.
You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Mettler Toledo's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Mettler Toledo Inter 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 Mettler Toledo's income statement, its balance sheet, and the statement of cash flows.
Potential Mettler Toledo investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Mettler Toledo investors may work on each financial statement separately, they are all related. The changes in Mettler Toledo's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Mettler Toledo'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.