Prestige Consumer Operating Margin vs. Price To Sales

PBV Stock  EUR 75.00  0.50  0.66%   
Considering Prestige Consumer's profitability and operating efficiency indicators, Prestige Consumer Healthcare may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Prestige Consumer's ability to earn profits and add value for shareholders.
For Prestige Consumer profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Prestige Consumer to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Prestige Consumer Healthcare utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Prestige Consumer's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Prestige Consumer Healthcare over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Prestige Consumer's value and its price as these two are different measures arrived at by different means. Investors typically determine if Prestige Consumer is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Prestige Consumer'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.

Prestige Consumer Price To Sales vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Prestige Consumer's current stock value. Our valuation model uses many indicators to compare Prestige Consumer value to that of its competitors to determine the firm's financial worth.
Prestige Consumer Healthcare 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 sales category among its peers fabricating about  8.21  of Price To Sales 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 Prestige Consumer's earnings, one of the primary drivers of an investment's value.

Prestige Price To Sales 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.

Prestige Consumer

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.31 %
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 Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Prestige Consumer

P/S

 = 

MV Per Share

Revenue Per Share

 = 
2.53 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Prestige Price To Sales Comparison

Prestige Consumer is currently under evaluation in price to sales category among its peers.

Prestige Consumer Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Prestige Consumer, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Prestige Consumer will eventually generate negative long term returns. The profitability progress is the general direction of Prestige Consumer's change in net profit over the period of time. It can combine multiple indicators of Prestige Consumer, 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.
Prestige Consumer Healthcare Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter healthcare products in North America, Australia, and internationally. Prestige Consumer Healthcare Inc. was founded in 1996 and is headquartered in Tarrytown, New York. PRESTIGE CONS operates under Medical Distribution classification in Germany and is traded on Frankfurt Stock Exchange. It employs 520 people.

Prestige Profitability Driver Comparison

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

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

Prestige Consumer Pair Trading

Prestige Consumer Healthcare Pair Trading Analysis

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

In addition to having Prestige Consumer 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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Other Information on Investing in Prestige Stock

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