Saudi American Profitability Analysis
| SAHN Stock | USD 0.0001 0.00 0.00% |
Net Income | First Reported 2010-12-31 | Previous Quarter 5.1 M | Current Value 5.3 M | Quarterly Volatility 1.7 M |
For Saudi American profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Saudi American to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Saudi American Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Saudi American's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Saudi American Holdings over time as well as its relative position and ranking within its peers.
Saudi |
Is Internet Software & Services (discontinued effective close of September 28, 2018) 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 Saudi American. If investors know Saudi 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 Saudi American listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 5.933 | Quarterly Revenue Growth 3.072 |
The market value of Saudi American Holdings is measured differently than its book value, which is the value of Saudi that is recorded on the company's balance sheet. Investors also form their own opinion of Saudi American's value that differs from its market value or its book value, called intrinsic value, which is Saudi American'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 Saudi American's market value can be influenced by many factors that don't directly affect Saudi American'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 Saudi American's value and its price as these two are different measures arrived at by different means. Investors typically determine if Saudi American is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Saudi American'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.
Saudi American Holdings Operating Margin vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Saudi American's current stock value. Our valuation model uses many indicators to compare Saudi American value to that of its competitors to determine the firm's financial worth. Saudi American Holdings is currently regarded as top stock in profit margin category among its peers. It also is currently regarded as top stock in operating margin category among its peers reporting about 2.75 of Operating Margin per Profit 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 Saudi American's earnings, one of the primary drivers of an investment's value.Saudi Operating Margin 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.
Saudi American |
| = | 0.24 % |
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.
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.
Saudi American |
| = | 0.65 % |
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.
Saudi Operating Margin Comparison
Saudi American is currently under evaluation in operating margin category among its peers.
Saudi American Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Saudi American, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Saudi American will eventually generate negative long term returns. The profitability progress is the general direction of Saudi American's change in net profit over the period of time. It can combine multiple indicators of Saudi American, 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 | ||
| Operating Income | 4.1 M | 4.3 M | |
| Net Income From Continuing Ops | 5.1 M | 5.3 M | |
| Income Before Tax | 5.1 M | 5.3 M | |
| Total Other Income Expense Net | 938.8 K | 985.7 K | |
| Net Income Applicable To Common Shares | 5.1 M | 5.3 M | |
| Net Income | 5.1 M | 5.3 M | |
| Change To Netincome | 7.7 M | 8.1 M |
Saudi Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Saudi American. 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 Saudi American 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 Saudi American's important profitability drivers and their relationship over time.
Use Saudi American 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 Saudi American 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 Saudi American will appreciate offsetting losses from the drop in the long position's value.Saudi American Pair Trading
Saudi American Holdings Pair Trading Analysis
The ability to find closely correlated positions to Saudi American could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Saudi American 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 Saudi American - 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 Saudi American Holdings to buy it.
The correlation of Saudi American 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 Saudi American moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Saudi American Holdings 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 Saudi American 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 Saudi American position
In addition to having Saudi American 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?
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To fully project Saudi American's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Saudi American Holdings 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 Saudi American's income statement, its balance sheet, and the statement of cash flows.