NGK Insulators Operating Margin vs. Price To Earning
| NGKIF Stock | USD 12.90 0.60 4.44% |
For NGK Insulators profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NGK Insulators to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NGK Insulators utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NGK Insulators's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NGK Insulators over time as well as its relative position and ranking within its peers.
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NGK Insulators Price To Earning vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NGK Insulators's current stock value. Our valuation model uses many indicators to compare NGK Insulators value to that of its competitors to determine the firm's financial worth. NGK Insulators is considered to be number one stock in operating margin category among its peers. It also is considered to be number one stock in price to earning category among its peers reporting about 75.56 of Price To Earning per Operating Margin. 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 NGK Insulators' earnings, one of the primary drivers of an investment's value.NGK Price To Earning vs. Operating Margin
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.
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| = | 0.14 % |
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.
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.
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| = | 10.45 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.
NGK Price To Earning Comparison
NGK Insulators is currently under evaluation in price to earning category among its peers.
NGK Insulators Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NGK Insulators, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NGK Insulators will eventually generate negative long term returns. The profitability progress is the general direction of NGK Insulators' change in net profit over the period of time. It can combine multiple indicators of NGK Insulators, 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.
NGK Insulators, Ltd., together with its subsidiaries, manufactures and sells electric power related equipment in Japan, North America, Europe, and Asia. The company was incorporated in 1919 and is headquartered in Nagoya, Japan. Ngk Insulators operates under Specialty Industrial Machinery classification in the United States and is traded on OTC Exchange. It employs 20099 people.
NGK Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NGK Insulators. 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 NGK Insulators 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 NGK Insulators' important profitability drivers and their relationship over time.
Use NGK Insulators 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 NGK Insulators 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 NGK Insulators will appreciate offsetting losses from the drop in the long position's value.NGK Insulators Pair Trading
NGK Insulators Pair Trading Analysis
The ability to find closely correlated positions to NGK Insulators could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NGK Insulators 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 NGK Insulators - 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 NGK Insulators to buy it.
The correlation of NGK Insulators 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 NGK Insulators moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NGK Insulators 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 NGK Insulators 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 NGK Insulators position
In addition to having NGK Insulators 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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Other Information on Investing in NGK Pink Sheet
To fully project NGK Insulators' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of NGK Insulators 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 NGK Insulators' income statement, its balance sheet, and the statement of cash flows.