RS GROUP Operating Margin vs. Price To Book
| RS1 Stock | 694.50 6.50 0.93% |
For RS GROUP profitability analysis, we use financial ratios and fundamental drivers that measure the ability of RS GROUP to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well RS GROUP PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between RS GROUP's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of RS GROUP PLC over time as well as its relative position and ranking within its peers.
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RS GROUP PLC Price To Book vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining RS GROUP's current stock value. Our valuation model uses many indicators to compare RS GROUP value to that of its competitors to determine the firm's financial worth. RS GROUP PLC is rated fourth in operating margin category among its peers. It is currently regarded as top stock in price to book category among its peers fabricating about 28.00 of Price To Book 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 RS GROUP's earnings, one of the primary drivers of an investment's value.RS1 Price To Book 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.
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| = | 0.09 % |
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 Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
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| = | 2.51 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
RS GROUP Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in RS GROUP, profitability is also one of the essential criteria for including it into their portfolios because, without profit, RS GROUP will eventually generate negative long term returns. The profitability progress is the general direction of RS GROUP's change in net profit over the period of time. It can combine multiple indicators of RS GROUP, 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 | 108.3 M | 61.1 M | |
| Operating Income | 281.3 M | 295.4 M | |
| Income Before Tax | 248.8 M | 261.2 M | |
| Total Other Income Expense Net | -32.5 M | -30.9 M | |
| Net Income | 183.7 M | 119 M | |
| Income Tax Expense | 65.1 M | 35 M | |
| Net Interest Income | -31.9 M | -30.3 M | |
| Interest Income | 4.8 M | 2.8 M | |
| Net Income From Continuing Ops | 183.7 M | 215.3 M | |
| Net Income Applicable To Common Shares | 264.5 M | 187.1 M | |
| Change To Netincome | 31.3 M | 32.8 M |
RS1 Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on RS GROUP. 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 RS GROUP 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 RS GROUP's important profitability drivers and their relationship over time.
Use RS GROUP 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 RS GROUP 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 RS GROUP will appreciate offsetting losses from the drop in the long position's value.RS GROUP Pair Trading
RS GROUP PLC Pair Trading Analysis
The ability to find closely correlated positions to RS GROUP could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace RS GROUP 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 RS GROUP - 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 RS GROUP PLC to buy it.
The correlation of RS GROUP 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 RS GROUP moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if RS GROUP PLC 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 RS GROUP 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 RS GROUP position
In addition to having RS GROUP 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 Electronic Equipment Thematic Idea Now
Electronic Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Electronic Equipment 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 Electronic Equipment Theme or any other thematic opportunities.
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Other Information on Investing in RS1 Stock
To fully project RS GROUP's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of RS GROUP PLC 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 RS GROUP's income statement, its balance sheet, and the statement of cash flows.