Vallourec Operating Margin vs. Profit Margin

VK Stock  EUR 16.72  0.20  1.21%   
Based on the measurements of profitability obtained from Vallourec's financial statements, Vallourec 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 Vallourec's ability to earn profits and add value for shareholders.
For Vallourec profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Vallourec to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Vallourec utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Vallourec's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Vallourec 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 Vallourec's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vallourec is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vallourec'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.

Vallourec Profit Margin vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Vallourec's current stock value. Our valuation model uses many indicators to compare Vallourec value to that of its competitors to determine the firm's financial worth.
Vallourec is rated first in operating margin category among its peers. It is rated first in profit margin category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Vallourec by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Vallourec'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.

Vallourec Profit Margin 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.

Vallourec

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.07 %
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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Vallourec

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.08) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Vallourec Profit Margin Comparison

Vallourec is currently under evaluation in profit margin category among its peers.

Vallourec Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Vallourec, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Vallourec will eventually generate negative long term returns. The profitability progress is the general direction of Vallourec's change in net profit over the period of time. It can combine multiple indicators of Vallourec, 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.
Vallourec S.A., through its subsidiaries, provides tubular solutions for oil and gas, industry, and power generation in Europe, North America, South America, Asia, the Middle East, and internationally. Vallourec S.A. was founded in 1899 and is headquartered in Boulogne-Billancourt, France. VALLOUREC operates under Steel Production And Products classification in France and is traded on Paris Stock Exchange. It employs 17000 people.

Vallourec Profitability Driver Comparison

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

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

Vallourec Pair Trading

Vallourec Pair Trading Analysis

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

In addition to having Vallourec 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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Absolute Returns ETFs Theme
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Other Information on Investing in Vallourec Stock

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