Sibanye Stillwater Return On Asset 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. Return On Asset 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 return on asset category among its peers. It also is currently regarded as top stock in return on equity category among its peers reporting about  1.60  of Return On Equity per Return On Asset. 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. 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.

Sibanye Stillwater

Return On Asset

 = 

Net Income

Total Assets

 = 
0.15
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.
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.

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Our tools can tell you how much better you can do entering a position in Sibanye Stillwater without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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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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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.