Based on the measurements of profitability obtained from Richelieu Hardware's financial statements, Richelieu Hardware is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Richelieu Hardware's ability to earn profits and add value for shareholders.
For Richelieu Hardware profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Richelieu Hardware to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Richelieu Hardware utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Richelieu Hardware's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Richelieu Hardware over time as well as its relative position and ranking within its peers.
Please note, there is a significant difference between Richelieu Hardware's value and its price as these two are different measures arrived at by different means. Investors typically determine if Richelieu Hardware is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Richelieu Hardware'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.
Richelieu Hardware Current Valuation vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Richelieu Hardware's current stock value. Our valuation model uses many indicators to compare Richelieu Hardware value to that of its competitors to determine the firm's financial worth.
Richelieu Hardware is currently regarded as top stock in profit margin category among its peers. It is rated third in current valuation category among its peers reporting about 46,767,579,920 of Current Valuation per Profit Margin. At this time, Richelieu Hardware's Net Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Richelieu Hardware by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Richelieu Hardware's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.
Richelieu Current Valuation 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.
Richelieu Hardware
Profit Margin
=
Net Income
Revenue
X
100
=
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.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Richelieu Hardware
Enterprise Value
=
Market Cap + Debt
-
Cash
=
2.32 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Richelieu Current Valuation vs Competition
Richelieu Hardware is rated third in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Discretionary industry is at this time estimated at about 67.53 Billion. Richelieu Hardware holds roughly 2.32 Billion in current valuation claiming about 3% of stocks in Consumer Discretionary industry.
The most important aspect of a successful company is its ability to generate a profit. For investors in Richelieu Hardware, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Richelieu Hardware will eventually generate negative long term returns. The profitability progress is the general direction of Richelieu Hardware's change in net profit over the period of time. It can combine multiple indicators of Richelieu Hardware, 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.
Profitability drivers are factors that can directly affect your investment outlook on Richelieu Hardware. 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 Richelieu Hardware 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 Richelieu Hardware's important profitability drivers and their relationship over time.
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 Richelieu Hardware 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 Richelieu Hardware will appreciate offsetting losses from the drop in the long position's value.
Richelieu Hardware Pair Trading
Richelieu Hardware Pair Trading Analysis
The ability to find closely correlated positions to Richelieu Hardware could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Richelieu Hardware 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 Richelieu Hardware - 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 Richelieu Hardware to buy it.
The correlation of Richelieu Hardware 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 Richelieu Hardware moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Richelieu Hardware 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 Richelieu Hardware 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 Richelieu Hardware position
In addition to having Richelieu Hardware 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 Business Services Thematic Idea Now
Business Services
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Services theme has 61 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 Business Services Theme or any other thematic opportunities.
To fully project Richelieu Hardware's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Richelieu Hardware 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 Richelieu Hardware's income statement, its balance sheet, and the statement of cash flows.
Potential Richelieu Hardware investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Richelieu Hardware investors may work on each financial statement separately, they are all related. The changes in Richelieu Hardware's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Richelieu Hardware'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.
