Taylor Devices Return On Equity vs. Operating Margin
| TAYD Stock | USD 43.58 0.17 0.39% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.17559695 | Current Value 0.1 | Quarterly Volatility 0.04365962 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.26 | 0.4674 |
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| Net Profit Margin | 0.21 | 0.2018 |
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| Pretax Profit Margin | 0.26 | 0.245 |
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| Return On Assets | 0.15 | 0.1427 |
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| Return On Equity | 0.1 | 0.1756 |
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For Taylor Devices profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Taylor Devices to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Taylor Devices utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Taylor Devices's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Taylor Devices over time as well as its relative position and ranking within its peers.
Taylor |
Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Taylor Devices. If investors know Taylor will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Taylor Devices listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.629 | Earnings Share 2.91 | Revenue Per Share 14.228 | Quarterly Revenue Growth 0.171 | Return On Assets 0.1071 |
The market value of Taylor Devices is measured differently than its book value, which is the value of Taylor that is recorded on the company's balance sheet. Investors also form their own opinion of Taylor Devices' value that differs from its market value or its book value, called intrinsic value, which is Taylor Devices' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Taylor Devices' market value can be influenced by many factors that don't directly affect Taylor Devices' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Taylor Devices' value and its price as these two are different measures arrived at by different means. Investors typically determine if Taylor Devices is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Taylor Devices' 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.
Taylor Devices Operating Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Taylor Devices's current stock value. Our valuation model uses many indicators to compare Taylor Devices value to that of its competitors to determine the firm's financial worth. Taylor Devices is rated second in return on equity category among its peers. It is currently regarded as top stock in operating margin category among its peers reporting about 1.35 of Operating Margin per Return On Equity. At present, Taylor Devices' Return On Equity is projected to increase slightly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Taylor Devices 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.Taylor Operating Margin 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.
Taylor Devices |
| = | 0.19 |
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.
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.
Taylor Devices |
| = | 0.25 % |
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.
Taylor Operating Margin Comparison
Taylor Devices is currently under evaluation in operating margin category among its peers.
Taylor Devices Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Taylor Devices, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Taylor Devices will eventually generate negative long term returns. The profitability progress is the general direction of Taylor Devices' change in net profit over the period of time. It can combine multiple indicators of Taylor Devices, 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.
| Last Reported | Projected for Next Year | ||
| Operating Income | 9.5 M | 10 M | |
| Income Before Tax | 10.9 M | 11.5 M | |
| Total Other Income Expense Net | 1.4 M | 1.5 M | |
| Income Tax Expense | 1.9 M | 2 M | |
| Net Income | 9 M | 9.4 M | |
| Net Income Applicable To Common Shares | 7.2 M | 7.6 M | |
| Net Income From Continuing Ops | 9 M | 9.4 M | |
| Non Operating Income Net Other | 800.7 K | 840.8 K | |
| Interest Income | 1.4 M | 1.5 M | |
| Net Interest Income | 1.4 M | 1.5 M | |
| Change To Netincome | -38.4 K | -36.5 K | |
| Net Income Per Share | 2.68 | 2.82 | |
| Income Quality | 1.47 | 1.54 | |
| Net Income Per E B T | 0.82 | 0.61 |
Taylor Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Taylor Devices. 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 Taylor Devices 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 Taylor Devices' important profitability drivers and their relationship over time.
Use Taylor Devices 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 Taylor Devices 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 Taylor Devices will appreciate offsetting losses from the drop in the long position's value.Taylor Devices Pair Trading
Taylor Devices Pair Trading Analysis
The ability to find closely correlated positions to Taylor Devices could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Taylor Devices 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 Taylor Devices - 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 Taylor Devices to buy it.
The correlation of Taylor Devices 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 Taylor Devices moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Taylor Devices 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 Taylor Devices 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 Taylor Devices position
In addition to having Taylor Devices 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?
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To fully project Taylor Devices' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Taylor Devices 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 Taylor Devices' income statement, its balance sheet, and the statement of cash flows.