Tele2 AB Return On Asset vs. Operating Margin

TEL2-A Stock  SEK 113.00  1.00  0.88%   
Based on the measurements of profitability obtained from Tele2 AB's financial statements, Tele2 AB 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 Tele2 AB's ability to earn profits and add value for shareholders.
For Tele2 AB profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Tele2 AB to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Tele2 AB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Tele2 AB's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Tele2 AB 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 Tele2 AB's value and its price as these two are different measures arrived at by different means. Investors typically determine if Tele2 AB is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Tele2 AB'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.

Tele2 AB Operating Margin vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Tele2 AB's current stock value. Our valuation model uses many indicators to compare Tele2 AB value to that of its competitors to determine the firm's financial worth.
Tele2 AB is currently regarded as top stock in return on asset category among its peers. It also is currently regarded as top stock in operating margin category among its peers reporting about  4.04  of Operating Margin per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value Tele2 AB by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Tele2 AB's 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.

Tele2 Operating Margin 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.

Tele2 AB

Return On Asset

 = 

Net Income

Total Assets

 = 
0.046
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.
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.

Tele2 AB

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.19 %
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.

Tele2 Operating Margin Comparison

Tele2 AB is currently under evaluation in operating margin category among its peers.

Tele2 AB Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Tele2 AB, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Tele2 AB will eventually generate negative long term returns. The profitability progress is the general direction of Tele2 AB's change in net profit over the period of time. It can combine multiple indicators of Tele2 AB, 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.
Tele2 AB , a telecom operator, provides telecommunication services for residential and business customers. Tele2 AB was founded in 1993 and is headquartered in Stockholm, Sweden. Tele2 AB operates under Telecom Services classification in Sweden and is traded on Stockholm Stock Exchange. It employs 5184 people.

Tele2 Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Tele2 AB. 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 Tele2 AB 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 Tele2 AB's important profitability drivers and their relationship over time.

Use Tele2 AB 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 Tele2 AB 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 Tele2 AB will appreciate offsetting losses from the drop in the long position's value.

Tele2 AB Pair Trading

Tele2 AB Pair Trading Analysis

The ability to find closely correlated positions to Tele2 AB could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Tele2 AB 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 Tele2 AB - 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 Tele2 AB to buy it.
The correlation of Tele2 AB 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 Tele2 AB moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Tele2 AB 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 Tele2 AB 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 Tele2 AB position

In addition to having Tele2 AB 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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Compulsion
Compulsion Theme
Companies involved in research, development, and manufacturing of products with compulsion characteristics such as cigarettes, addictive drugs and alcohol. The Compulsion theme has 40 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 Compulsion Theme or any other thematic opportunities.
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Other Information on Investing in Tele2 Stock

To fully project Tele2 AB's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Tele2 AB 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 Tele2 AB's income statement, its balance sheet, and the statement of cash flows.
Potential Tele2 AB investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Tele2 AB investors may work on each financial statement separately, they are all related. The changes in Tele2 AB's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Tele2 AB'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.