ROHM Operating Margin vs. Profit Margin

ROM Stock  EUR 8.94  0.00  0.00%   
Taking into consideration ROHM's profitability measurements, ROHM Co 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 ROHM's ability to earn profits and add value for shareholders.
For ROHM profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ROHM to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ROHM Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ROHM's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ROHM Co 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 ROHM's value and its price as these two are different measures arrived at by different means. Investors typically determine if ROHM is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ROHM'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.

ROHM Profit Margin vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining ROHM's current stock value. Our valuation model uses many indicators to compare ROHM value to that of its competitors to determine the firm's financial worth.
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ROHM Co is currently regarded as top stock in operating margin category among its peers. It also is currently regarded as top stock in profit margin category among its peers fabricating about  0.95  of Profit Margin per Operating Margin. The ratio of Operating Margin to Profit Margin for ROHM Co is roughly  1.05 . 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 ROHM's earnings, one of the primary drivers of an investment's value.

ROHM Profit Margin 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.

ROHM

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.18 %
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.
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.

ROHM

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.17 %
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.

ROHM Profit Margin Comparison

0.13260.04840.0609
ROHM is currently under evaluation in profit margin category among its peers.

ROHM Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in ROHM, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ROHM will eventually generate negative long term returns. The profitability progress is the general direction of ROHM's change in net profit over the period of time. It can combine multiple indicators of ROHM, 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.
ROHM Co., Ltd. manufactures and sells electronic components in Japan, the Americas, Europe, Asia, and internationally. ROHM Co., Ltd. was founded in 1958 and is headquartered in Kyoto, Japan. ROHM Co operates under Semiconductors classification in Germany and is traded on Frankfurt Stock Exchange. It employs 22899 people.

ROHM Profitability Driver Comparison

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

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

ROHM Pair Trading

ROHM Co Pair Trading Analysis

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

In addition to having ROHM 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 ROHM Stock

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