Sitime Return On Asset vs. Gross Profit

SITM Stock  USD 257.62  3.41  1.31%   
Based on the measurements of profitability obtained from Sitime's financial statements, Sitime may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Sitime's ability to earn profits and add value for shareholders. As of the 13th of December 2024, Price To Sales Ratio is likely to grow to 19.75. Also, Days Sales Outstanding is likely to grow to 78.78. At this time, Sitime's Net Income Per E B T is very stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.420.5701
Way Down
Slightly volatile
For Sitime profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sitime to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sitime utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sitime's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sitime over time as well as its relative position and ranking within its peers.
  
Check out World Market Map.
To learn how to invest in Sitime Stock, please use our How to Invest in Sitime guide.
Is Semiconductors & Semiconductor Equipment 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 Sitime. If investors know Sitime 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 Sitime 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
(0.61)
Earnings Share
(4.10)
Revenue Per Share
7.732
Quarterly Revenue Growth
0.624
Return On Assets
(0.08)
The market value of Sitime is measured differently than its book value, which is the value of Sitime that is recorded on the company's balance sheet. Investors also form their own opinion of Sitime's value that differs from its market value or its book value, called intrinsic value, which is Sitime'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 Sitime's market value can be influenced by many factors that don't directly affect Sitime'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 Sitime's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sitime is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sitime'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.

Sitime Gross Profit vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Sitime's current stock value. Our valuation model uses many indicators to compare Sitime value to that of its competitors to determine the firm's financial worth.
Sitime is rated below average in return on asset category among its peers. It is rated below average in gross profit category among its peers . At this time, Sitime's Gross Profit is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Sitime 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.

Sitime Gross Profit vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Sitime

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0823
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Sitime

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
182.96 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Sitime Gross Profit Comparison

Sitime is currently under evaluation in gross profit category among its peers.

Sitime Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Sitime, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sitime will eventually generate negative long term returns. The profitability progress is the general direction of Sitime's change in net profit over the period of time. It can combine multiple indicators of Sitime, 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 ReportedProjected for Next Year
Net Interest Income23.6 M24.8 M
Interest Income23.6 M24.8 M
Operating Income-107.2 M-101.8 M
Net Loss-62.1 M-59 M
Income Before Tax-80.4 M-76.4 M
Total Other Income Expense Net26.8 M28.2 M
Net Income Applicable To Common Shares26.7 M28.1 M
Net Loss-80.5 M-76.5 M
Income Tax Expense152 K159.6 K
Non Operating Income Net Other-439.2 K-417.2 K
Change To Netincome64 M67.2 M
Net Loss(3.63)(3.45)
Income Quality(0.10)(0.09)
Net Income Per E B T 1.00  1.10 

Sitime Profitability Driver Comparison

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

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

Sitime Pair Trading

Sitime Pair Trading Analysis

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

In addition to having Sitime 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 Office Supplies Thematic Idea Now

Office Supplies
Office Supplies Theme
Companies producing and selling office supplies, and accessories. The Office Supplies theme has 43 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 Office Supplies Theme or any other thematic opportunities.
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When determining whether Sitime is a strong investment it is important to analyze Sitime's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Sitime's future performance. For an informed investment choice regarding Sitime Stock, refer to the following important reports:
Check out World Market Map.
To learn how to invest in Sitime Stock, please use our How to Invest in Sitime guide.
You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
To fully project Sitime's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sitime 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 Sitime's income statement, its balance sheet, and the statement of cash flows.
Potential Sitime investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Sitime investors may work on each financial statement separately, they are all related. The changes in Sitime's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Sitime'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.