Smiths Group Price To Earning vs. Operating Margin
| SMGZY Stock | USD 23.00 0.15 0.66% |
For Smiths Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Smiths Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Smiths Group Plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Smiths Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Smiths Group Plc over time as well as its relative position and ranking within its peers.
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Smiths Group Plc Operating Margin vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Smiths Group's current stock value. Our valuation model uses many indicators to compare Smiths Group value to that of its competitors to determine the firm's financial worth. Smiths Group Plc is currently regarded as top stock in price to earning category among its peers. It also is currently regarded as top stock in operating margin category among its peers reporting about 0.01 of Operating Margin per Price To Earning. The ratio of Price To Earning to Operating Margin for Smiths Group Plc is roughly 171.30 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Smiths Group by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Smiths Group's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Smiths Operating Margin vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Smiths Group |
| = | 22.56 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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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| = | 0.13 % |
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.
Smiths Operating Margin Comparison
Smiths Group is currently under evaluation in operating margin category among its peers.
Smiths Group Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Smiths Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Smiths Group will eventually generate negative long term returns. The profitability progress is the general direction of Smiths Group's change in net profit over the period of time. It can combine multiple indicators of Smiths 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.
Smiths Group plc operates as a technology company serving the medical technology, security and defense, general industrial, energy, and space and aerospace markets worldwide. Smiths Group plc was founded in 1851 and is headquartered in London, the United Kingdom. SMITHS GROUP operates under Specialty Industrial Machinery classification in the United States and is traded on OTC Exchange. It employs 14764 people.
Smiths Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Smiths 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 Smiths 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 Smiths Group's important profitability drivers and their relationship over time.
Use Smiths 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 Smiths 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 Smiths Group will appreciate offsetting losses from the drop in the long position's value.Smiths Group Pair Trading
Smiths Group Plc Pair Trading Analysis
The ability to find closely correlated positions to Smiths 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 Smiths 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 Smiths 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 Smiths Group Plc to buy it.
The correlation of Smiths 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 Smiths Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Smiths 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 Smiths 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 Smiths Group position
In addition to having Smiths 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?
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Additional Tools for Smiths Pink Sheet Analysis
When running Smiths Group's price analysis, check to measure Smiths Group's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Smiths Group is operating at the current time. Most of Smiths Group's value examination focuses on studying past and present price action to predict the probability of Smiths Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Smiths Group's price. Additionally, you may evaluate how the addition of Smiths Group to your portfolios can decrease your overall portfolio volatility.