Ree Automotive Return On Equity vs. Operating Margin
| REE Stock | USD 8.83 1.07 10.81% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (1.46) | Current Value (1.54) | Quarterly Volatility 0.27215945 |
For Ree Automotive profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ree Automotive to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ree Automotive Holding utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ree Automotive's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ree Automotive Holding over time as well as its relative position and ranking within its peers.
Ree |
Is Apparel, Accessories & Luxury Goods 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 Ree Automotive. If investors know Ree 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 Ree Automotive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (9.19) | Revenue Per Share | Quarterly Revenue Growth (1.00) | Return On Assets | Return On Equity |
The market value of Ree Automotive Holding is measured differently than its book value, which is the value of Ree that is recorded on the company's balance sheet. Investors also form their own opinion of Ree Automotive's value that differs from its market value or its book value, called intrinsic value, which is Ree Automotive's 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 Ree Automotive's market value can be influenced by many factors that don't directly affect Ree Automotive's 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 Ree Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ree Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ree Automotive'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.
Ree Automotive Holding Operating Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ree Automotive's current stock value. Our valuation model uses many indicators to compare Ree Automotive value to that of its competitors to determine the firm's financial worth. Ree Automotive Holding is rated below average in return on equity category among its peers. It is rated below average in operating margin category among its peers . At present, Ree Automotive's Return On Equity is projected to increase slightly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Ree Automotive by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Ree Operating Margin vs. Return On Equity
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.
Ree Automotive |
| = | -0.99 |
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.
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.
Ree Automotive |
| = | (123.11) % |
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.
Ree Operating Margin Comparison
Ree Automotive is currently under evaluation in operating margin category among its peers.
Ree Automotive Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ree Automotive, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ree Automotive will eventually generate negative long term returns. The profitability progress is the general direction of Ree Automotive's change in net profit over the period of time. It can combine multiple indicators of Ree Automotive, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -171 M | -179.6 M | |
| Net Loss | -96.7 M | -101.5 M | |
| Net Interest Income | 2.6 M | 1.8 M | |
| Interest Income | 2.6 M | 1.8 M | |
| Operating Income | -119.9 M | -125.9 M | |
| Net Loss | -106.2 M | -111.5 M | |
| Income Before Tax | -115.6 M | -121.3 M | |
| Total Other Income Expense Net | 4.3 M | 4.1 M | |
| Net Loss | -114.2 M | -119.9 M | |
| Income Tax Expense | -1.4 M | -1.3 M | |
| Change To Netincome | 9.6 M | 9.1 M | |
| Net Loss | (11.32) | (11.89) | |
| Income Quality | 0.78 | 0.43 | |
| Net Income Per E B T | 0.99 | 0.78 |
Ree Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Ree Automotive. 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 Ree Automotive 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 Ree Automotive's important profitability drivers and their relationship over time.