Sibanye Stillwater Price To Sales vs. Return On Equity

SSW Stock   1,807  84.00  4.44%   
Considering Sibanye Stillwater's profitability and operating efficiency indicators, Sibanye Stillwater 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 Sibanye Stillwater's ability to earn profits and add value for shareholders.
For Sibanye Stillwater profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sibanye Stillwater to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sibanye Stillwater utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sibanye Stillwater's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sibanye Stillwater over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Sibanye Stillwater's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sibanye Stillwater is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sibanye Stillwater'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.

Sibanye Stillwater Return On Equity vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Sibanye Stillwater's current stock value. Our valuation model uses many indicators to compare Sibanye Stillwater value to that of its competitors to determine the firm's financial worth.
Sibanye Stillwater is currently regarded as top stock in price to sales category among its peers. It also is currently regarded as top stock in return on equity category among its peers reporting about  0.28  of Return On Equity per Price To Sales. The ratio of Price To Sales to Return On Equity for Sibanye Stillwater is roughly  3.61 . 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 Sibanye Stillwater's earnings, one of the primary drivers of an investment's value.

Sibanye Return On Equity vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Sibanye Stillwater

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.87 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
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.

Sibanye Stillwater

Return On Equity

 = 

Net Income

Total Equity

 = 
0.24
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.

Sibanye Return On Equity Comparison

Sibanye Stillwater is currently under evaluation in return on equity category among its peers.

Sibanye Profitability Driver Comparison

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

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

Sibanye Stillwater Pair Trading

Sibanye Stillwater Pair Trading Analysis

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

In addition to having Sibanye Stillwater 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.

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Warren Buffett Holdings
Warren Buffett Holdings Theme
A long-term portfolio of publicly-traded stocks on US exchanges that are owned by Warren Buffett's holding company Berkshire Hathaway. The Warren Buffett Holdings theme has 45 constituents at this time.
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Other Information on Investing in Sibanye Stock

To fully project Sibanye Stillwater's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sibanye Stillwater 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 Sibanye Stillwater's income statement, its balance sheet, and the statement of cash flows.
Potential Sibanye Stillwater investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Sibanye Stillwater investors may work on each financial statement separately, they are all related. The changes in Sibanye Stillwater's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Sibanye Stillwater'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.