NEW WORLD Profit Margin vs. Operating Margin
| NWDA Stock | EUR 0.64 0.01 1.54% |
For NEW WORLD profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NEW WORLD to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NEW WORLD DEVCO utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NEW WORLD's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NEW WORLD DEVCO over time as well as its relative position and ranking within its peers.
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NEW WORLD DEVCO Operating Margin vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NEW WORLD's current stock value. Our valuation model uses many indicators to compare NEW WORLD value to that of its competitors to determine the firm's financial worth. NEW WORLD DEVCO is rated below average in profit margin category among its peers. It is rated below average in operating margin category among its peers reporting about 2.50 of Operating Margin per Profit 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 NEW WORLD's earnings, one of the primary drivers of an investment's value.NEW Operating Margin vs. Profit Margin
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.
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| = | 0.05 % |
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.
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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| = | 0.13 % |
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.
NEW Operating Margin Comparison
NEW WORLD is regarded fifth in operating margin category among its peers.
NEW WORLD Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NEW WORLD, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NEW WORLD will eventually generate negative long term returns. The profitability progress is the general direction of NEW WORLD's change in net profit over the period of time. It can combine multiple indicators of NEW WORLD, 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.
New World Development Company Limited, an investment holding company, engages in the property development and investment business in Hong Kong and internationally. New World Development Company Limited was founded in 1970 and is headquartered in Central, Hong Kong. NEW WORLD operates under Real EstateDiversified classification in Germany and is traded on Frankfurt Stock Exchange. It employs 38000 people.
NEW Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NEW WORLD. 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 NEW WORLD 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 NEW WORLD's important profitability drivers and their relationship over time.
Use NEW WORLD 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 NEW WORLD 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 NEW WORLD will appreciate offsetting losses from the drop in the long position's value.NEW WORLD Pair Trading
NEW WORLD DEVCO Pair Trading Analysis
The ability to find closely correlated positions to NEW WORLD could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NEW WORLD 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 NEW WORLD - 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 NEW WORLD DEVCO to buy it.
The correlation of NEW WORLD 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 NEW WORLD moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NEW WORLD DEVCO 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 NEW WORLD 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 NEW WORLD position
In addition to having NEW WORLD 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 IT Thematic Idea Now
IT
Information Technology (IT) companies and IT service providers across different domains. The IT theme has 48 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 IT Theme or any other thematic opportunities.
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Other Information on Investing in NEW Stock
To fully project NEW WORLD's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of NEW WORLD DEVCO 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 NEW WORLD's income statement, its balance sheet, and the statement of cash flows.