Enpro Industries Net Income vs. Return On Equity

NPO Stock  USD 190.47  1.50  0.79%   
Based on Enpro Industries' profitability indicators, Enpro Industries' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Enpro Industries' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2001-03-31
Previous Quarter
26.7 M
Current Value
19.8 M
Quarterly Volatility
62 M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of the 11th of December 2024, Price To Sales Ratio is likely to grow to 3.25. Also, Days Sales Outstanding is likely to grow to 76.13. At this time, Enpro Industries' Income Before Tax is very stable compared to the past year. As of the 11th of December 2024, Net Income Applicable To Common Shares is likely to grow to about 247.7 M, though Accumulated Other Comprehensive Income is likely to grow to (21.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.270.4029
Way Down
Pretty Stable
For Enpro Industries profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Enpro Industries to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Enpro Industries utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Enpro Industries's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Enpro Industries over time as well as its relative position and ranking within its peers.
  

Enpro Industries' Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
To learn how to invest in Enpro Stock, please use our How to Invest in Enpro Industries guide.
Is Industrial Machinery & Supplies & Components 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 Enpro Industries. If investors know Enpro 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 Enpro Industries 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
1.41
Dividend Share
1.19
Earnings Share
2.55
Revenue Per Share
49.554
Quarterly Revenue Growth
0.041
The market value of Enpro Industries is measured differently than its book value, which is the value of Enpro that is recorded on the company's balance sheet. Investors also form their own opinion of Enpro Industries' value that differs from its market value or its book value, called intrinsic value, which is Enpro Industries' 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 Enpro Industries' market value can be influenced by many factors that don't directly affect Enpro Industries' 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 Enpro Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine if Enpro Industries is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Enpro Industries' 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.

Enpro Industries Return On Equity vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Enpro Industries's current stock value. Our valuation model uses many indicators to compare Enpro Industries value to that of its competitors to determine the firm's financial worth.
Enpro Industries is rated below average in net income category among its peers. It is rated below average in return on equity category among its peers . The ratio of Net Income to Return On Equity for Enpro Industries is about  285,714,286 . At this time, Enpro Industries' Net Income is very stable compared to the past year. 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 Enpro Industries' earnings, one of the primary drivers of an investment's value.

Enpro Return On Equity vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Enpro Industries

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
10.8 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Enpro Industries

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0378
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Enpro Return On Equity Comparison

Enpro Industries is currently under evaluation in return on equity category among its peers.

Enpro Industries Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Enpro Industries, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Enpro Industries will eventually generate negative long term returns. The profitability progress is the general direction of Enpro Industries' change in net profit over the period of time. It can combine multiple indicators of Enpro Industries, 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-22.2 M-21.1 M
Operating Income76.8 M51.4 M
Income Before Tax37.7 M45.9 M
Total Other Income Expense Net-39.1 M-37.1 M
Net Income Applicable To Common Shares235.9 M247.7 M
Net Income10.8 M10.3 M
Income Tax Expense30.8 M32.3 M
Net Loss-49.7 M-47.2 M
Non Operating Income Net Other-9.5 M-9.1 M
Interest Income12.7 M6.7 M
Net Interest Income-33.6 M-35.3 M
Change To Netincome-102.5 M-97.4 M
Net Income Per Share 1.06  1.66 
Income Quality 19.24  20.20 
Net Income Per E B T 0.59  1.01 

Enpro Profitability Driver Comparison

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

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

Enpro Industries Pair Trading

Enpro Industries Pair Trading Analysis

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

In addition to having Enpro Industries 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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Most Shorted Equities Theme
Dynamically calculated list of top equities currently trending upward via a buy-out by investors. The Most Shorted Equities theme has 234 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 Most Shorted Equities Theme or any other thematic opportunities.
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When determining whether Enpro Industries offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Enpro Industries' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Enpro Industries Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Enpro Industries Stock:
Check out Correlation Analysis.
To learn how to invest in Enpro Stock, please use our How to Invest in Enpro Industries guide.
You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
To fully project Enpro Industries' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Enpro Industries 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 Enpro Industries' income statement, its balance sheet, and the statement of cash flows.
Potential Enpro Industries investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Enpro Industries investors may work on each financial statement separately, they are all related. The changes in Enpro Industries's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Enpro Industries'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.