Techstep ASA Return On Equity vs. Price To Earning

TECH Stock  NOK 11.75  0.30  2.49%   
Based on the key profitability measurements obtained from Techstep ASA's financial statements, Techstep ASA 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 Techstep ASA's ability to earn profits and add value for shareholders.
For Techstep ASA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Techstep ASA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Techstep ASA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Techstep ASA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Techstep ASA 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 Techstep ASA's value and its price as these two are different measures arrived at by different means. Investors typically determine if Techstep ASA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Techstep ASA'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.

Techstep ASA Price To Earning vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Techstep ASA's current stock value. Our valuation model uses many indicators to compare Techstep ASA value to that of its competitors to determine the firm's financial worth.
Techstep ASA is currently regarded as top stock in return on equity category among its peers. It also is currently regarded as top stock in price to earning category among its peers . 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 Techstep ASA's earnings, one of the primary drivers of an investment's value.

Techstep Price To Earning 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.

Techstep ASA

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.12
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.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Techstep ASA

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
40.78 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Techstep Price To Earning Comparison

Techstep ASA is currently under evaluation in price to earning category among its peers.

Techstep ASA Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Techstep ASA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Techstep ASA will eventually generate negative long term returns. The profitability progress is the general direction of Techstep ASA's change in net profit over the period of time. It can combine multiple indicators of Techstep ASA, 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.
Techstep ASA provides digital workplace services in Norway and Sweden. The company also provides industry-leading cloud-based PBX solutions and enterprise mobility management services, including mobile security, system design, implementation, and mobile device management services. TECHSTEP ASA operates under Internet And Networking Services classification in Norway and is traded on Oslo Stock Exchange. It employs 223 people.

Techstep Profitability Driver Comparison

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

Use Techstep ASA 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 Techstep ASA 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 Techstep ASA will appreciate offsetting losses from the drop in the long position's value.

Techstep ASA Pair Trading

Techstep ASA Pair Trading Analysis

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

In addition to having Techstep ASA 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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Run ESG Investing Thematic Idea Now

ESG Investing
ESG Investing Theme
Sustainable investments that promote the conservation of the natural world, social resposibility, freindly employees policies and strong governance. The ESG Investing theme has 51 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 ESG Investing Theme or any other thematic opportunities.
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Other Information on Investing in Techstep Stock

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