Summit Midstream Return On Equity vs. EBITDA
Taking into consideration Summit Midstream's profitability measurements, Summit Midstream Partners 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 Summit Midstream's ability to earn profits and add value for shareholders.
Check out World Market Map to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
For Summit Midstream profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Summit Midstream to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Summit Midstream Partners utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Summit Midstream's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Summit Midstream Partners over time as well as its relative position and ranking within its peers.
Summit |
Summit Midstream Partners EBITDA vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Summit Midstream's current stock value. Our valuation model uses many indicators to compare Summit Midstream value to that of its competitors to determine the firm's financial worth. Summit Midstream Partners is rated below average in return on equity category among its peers. It is rated below average in ebitda category among its peers totaling about 1,754,364,876 of EBITDA per Return On Equity. Comparative valuation analysis is a catch-all technique that is used if you cannot value Summit Midstream 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.Summit EBITDA vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Summit Midstream |
| = | 0.12 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Summit Midstream |
| = | 205.79 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Summit EBITDA Comparison
Summit Midstream is currently under evaluation in ebitda category among its peers.
Summit Midstream Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Summit Midstream, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Summit Midstream will eventually generate negative long term returns. The profitability progress is the general direction of Summit Midstream's change in net profit over the period of time. It can combine multiple indicators of Summit Midstream, 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.
Summit Midstream Partners, LP focuses on owning, developing, and operating midstream energy infrastructure assets primarily shale formations in the continental United States. The company was founded in 2009 and is headquartered in Houston, Texas. Summit Midstream operates under Oil Gas Midstream classification in the United States and is traded on New York Stock Exchange. It employs 209 people.
Summit Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Summit Midstream. 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 Summit Midstream 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 Summit Midstream's important profitability drivers and their relationship over time.
Use Summit Midstream 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 Summit Midstream 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 Summit Midstream will appreciate offsetting losses from the drop in the long position's value.Summit Midstream Pair Trading
Summit Midstream Partners Pair Trading Analysis
The ability to find closely correlated positions to Summit Midstream could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Summit Midstream 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 Summit Midstream - 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 Summit Midstream Partners to buy it.
The correlation of Summit Midstream 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 Summit Midstream moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Summit Midstream Partners 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 Summit Midstream 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 Summit Midstream position
In addition to having Summit Midstream 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 Adviser Favorites Thematic Idea Now
Adviser Favorites
Financial advisors frequently recommend that individuals diversify their investment portfolios with a mix of different types of stocks. These can include blue-chip stocks, growth stocks, and dividend stocks. The Adviser Favorites theme has 17 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 Adviser Favorites Theme or any other thematic opportunities.
| View All Next | Launch |
Check out World Market Map to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Consideration for investing in Summit Stock
If you are still planning to invest in Summit Midstream Partners check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Summit Midstream's history and understand the potential risks before investing.
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Global Correlations Find global opportunities by holding instruments from different markets |