Steel Dynamics Operating Margin vs. Price To Sales
Based on Steel Dynamics' profitability indicators, Steel Dynamics 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 Steel Dynamics' 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 various price indices.
Please note, there is a significant difference between Steel Dynamics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Steel Dynamics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Steel Dynamics' 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.
For Steel Dynamics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Steel Dynamics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Steel Dynamics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Steel Dynamics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Steel Dynamics over time as well as its relative position and ranking within its peers.
Steel |
Steel Dynamics Price To Sales vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Steel Dynamics's current stock value. Our valuation model uses many indicators to compare Steel Dynamics value to that of its competitors to determine the firm's financial worth. Steel Dynamics is rated below average in operating margin category among its peers. It also is rated below average in price to sales category among its peers fabricating about 74.05 of Price To Sales per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Steel Dynamics by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Steel Dynamics' Stock. 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.Steel Price To Sales vs. Operating Margin
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.
Steel Dynamics |
| = | 0.23 % |
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.
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.
Steel Dynamics |
| = | 16.94 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.
Steel Price To Sales Comparison
Steel Dynamics is rated fifth in price to sales category among its peers.
Steel Dynamics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Steel Dynamics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Steel Dynamics will eventually generate negative long term returns. The profitability progress is the general direction of Steel Dynamics' change in net profit over the period of time. It can combine multiple indicators of Steel Dynamics, 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.
Steel Dynamics, Inc., together with its subsidiaries, operates as a steel producer and metal recycler in the United States. Steel Dynamics, Inc. was incorporated in 1993 and is headquartered in Fort Wayne, Indiana. STEEL DYNAMICS operates under Steel classification in Mexico and is traded on Mexico Stock Exchange. It employs 9625 people.
Steel Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Steel Dynamics. 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 Steel Dynamics 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 Steel Dynamics' important profitability drivers and their relationship over time.
Use Steel Dynamics 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 Steel Dynamics 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 Steel Dynamics will appreciate offsetting losses from the drop in the long position's value.Steel Dynamics Pair Trading
Steel Dynamics Pair Trading Analysis
The ability to find closely correlated positions to Steel Dynamics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Steel Dynamics 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 Steel Dynamics - 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 Steel Dynamics to buy it.
The correlation of Steel Dynamics 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 Steel Dynamics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Steel Dynamics 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 Steel Dynamics 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 Steel Dynamics position
In addition to having Steel Dynamics 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 Petroleum and Natural Gas Thematic Idea Now
Petroleum and Natural Gas
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Petroleum and Natural Gas 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 Petroleum and Natural Gas 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 various price indices. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Tools for Steel Stock
When running Steel Dynamics' price analysis, check to measure Steel Dynamics' 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 Steel Dynamics is operating at the current time. Most of Steel Dynamics' value examination focuses on studying past and present price action to predict the probability of Steel Dynamics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Steel Dynamics' price. Additionally, you may evaluate how the addition of Steel Dynamics to your portfolios can decrease your overall portfolio volatility.
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |