Waste Management Return On Equity vs. Gross Profit
| W1MC34 Stock | 657.36 6.32 0.95% |
For Waste Management profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Waste Management to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Waste Management utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Waste Management's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Waste Management over time as well as its relative position and ranking within its peers.
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Waste Management Gross Profit vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Waste Management's current stock value. Our valuation model uses many indicators to compare Waste Management value to that of its competitors to determine the firm's financial worth. Waste Management is rated below average in return on equity category among its peers. It also is rated below average in gross profit category among its peers fabricating about 23,123,048,095 of Gross Profit per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Waste Management by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Waste Management'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.Waste Gross Profit 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.
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| = | 0.32 |
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.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Waste Management |
| = | 7.4 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Waste Gross Profit Comparison
Waste Management is rated below average in gross profit category among its peers.
Waste Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Waste Management. 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 Waste Management 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 Waste Management's important profitability drivers and their relationship over time.
Use Waste Management 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 Waste Management 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 Waste Management will appreciate offsetting losses from the drop in the long position's value.Waste Management Pair Trading
Waste Management Pair Trading Analysis
The ability to find closely correlated positions to Waste Management could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Waste Management 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 Waste Management - 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 Waste Management to buy it.
The correlation of Waste Management 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 Waste Management moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Waste Management 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 Waste Management 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 Waste Management position
In addition to having Waste Management 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 Heavy Metals Thematic Idea Now
Heavy Metals
Companies involved in mining, production, and distribution of various industrial metals and minerals. The Heavy Metals theme has 37 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 Heavy Metals Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Waste Stock
When determining whether Waste Management is a strong investment it is important to analyze Waste Management's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Waste Management's future performance. For an informed investment choice regarding Waste Stock, refer to the following important reports:Check out Your Current Watchlist. For information on how to trade Waste Stock refer to our How to Trade Waste Stock guide.You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Waste Management's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Waste Management 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 Waste Management's income statement, its balance sheet, and the statement of cash flows.