Sovos Brands Net Income vs. EBITDA
SOVODelisted Stock | USD 18.62 0.16 0.85% |
For Sovos Brands profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sovos Brands to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sovos Brands utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sovos Brands's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sovos Brands over time as well as its relative position and ranking within its peers.
Sovos |
Sovos Brands EBITDA vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Sovos Brands's current stock value. Our valuation model uses many indicators to compare Sovos Brands value to that of its competitors to determine the firm's financial worth. Sovos Brands is rated below average in net income category among its peers. It is rated below average in ebitda category among its peers totaling about 4.28 of EBITDA per Net Income. 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 Sovos Brands' earnings, one of the primary drivers of an investment's value.Sovos EBITDA vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Sovos Brands |
| = | 30.17 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
Sovos Brands |
| = | 129.02 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.
Sovos EBITDA Comparison
Sovos Brands is currently under evaluation in ebitda category among its peers.
Sovos Brands Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Sovos Brands, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sovos Brands will eventually generate negative long term returns. The profitability progress is the general direction of Sovos Brands' change in net profit over the period of time. It can combine multiple indicators of Sovos Brands, 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.
Sovos Brands, Inc., through its subsidiaries, manufactures and distributes consumer food products in the United States. Sovos Brands, Inc. was founded in 1983 and is headquartered in Louisville, Colorado. Sovos Brands operates under Packaged Foods classification in the United States and is traded on NASDAQ Exchange. It employs 608 people.
Sovos Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Sovos Brands. 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 Sovos Brands 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 Sovos Brands' important profitability drivers and their relationship over time.
Use Sovos Brands 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 Sovos Brands 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 Sovos Brands will appreciate offsetting losses from the drop in the long position's value.Sovos Brands Pair Trading
Sovos Brands Pair Trading Analysis
The ability to find closely correlated positions to Sovos Brands could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sovos Brands 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 Sovos Brands - 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 Sovos Brands to buy it.
The correlation of Sovos Brands 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 Sovos Brands moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sovos Brands 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 Sovos Brands 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 Sovos Brands position
In addition to having Sovos Brands 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 Chemicals Thematic Idea Now
Chemicals
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Chemicals 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 Chemicals Theme or any other thematic opportunities.
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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 real. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Consideration for investing in Sovos Stock
If you are still planning to invest in Sovos Brands 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 Sovos Brands' history and understand the potential risks before investing.
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