Westamerica Bancorporation Price To Earning vs. Profit Margin
| WB1 Stock | EUR 49.60 1.40 2.90% |
For Westamerica Bancorporation profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Westamerica Bancorporation to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Westamerica Bancorporation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Westamerica Bancorporation's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Westamerica Bancorporation over time as well as its relative position and ranking within its peers.
Westamerica |
Westamerica Bancorporation Profit Margin vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Westamerica Bancorporation's current stock value. Our valuation model uses many indicators to compare Westamerica Bancorporation value to that of its competitors to determine the firm's financial worth. Westamerica Bancorporation is rated first in price to earning category among its peers. It is rated third in profit margin category among its peers fabricating about 0.03 of Profit Margin per Price To Earning. The ratio of Price To Earning to Profit Margin for Westamerica Bancorporation is roughly 38.78 . 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 Westamerica Bancorporation's earnings, one of the primary drivers of an investment's value.Westamerica Profit Margin vs. Price To Earning
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.
Westamerica Bancorporation |
| = | 17.86 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.
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.
Westamerica Bancorporation |
| = | 0.46 % |
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.
Westamerica Profit Margin Comparison
Westamerica Bancorporation is currently under evaluation in profit margin category among its peers.
Westamerica Bancorporation Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Westamerica Bancorporation, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Westamerica Bancorporation will eventually generate negative long term returns. The profitability progress is the general direction of Westamerica Bancorporation's change in net profit over the period of time. It can combine multiple indicators of Westamerica Bancorporation, 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.
Westamerica Bancorporation operates as a bank holding company for the Westamerica Bank that provides various banking products and services to individual and commercial customers. Westamerica Bancorporation was founded in 1972 and is headquartered in San Rafael, California. WESTAMERICA BANCORP operates under BanksRegional classification in Germany and is traded on Frankfurt Stock Exchange. It employs 578 people.
Westamerica Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Westamerica Bancorporation. 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 Westamerica Bancorporation 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 Westamerica Bancorporation's important profitability drivers and their relationship over time.
Use Westamerica Bancorporation 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 Westamerica Bancorporation 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 Westamerica Bancorporation will appreciate offsetting losses from the drop in the long position's value.Westamerica Bancorporation Pair Trading
Westamerica Bancorporation Pair Trading Analysis
The ability to find closely correlated positions to Westamerica Bancorporation could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Westamerica Bancorporation 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 Westamerica Bancorporation - 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 Westamerica Bancorporation to buy it.
The correlation of Westamerica Bancorporation 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 Westamerica Bancorporation moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Westamerica Bancorporation 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 Westamerica Bancorporation 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 Westamerica Bancorporation position
In addition to having Westamerica Bancorporation 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 Management Thematic Idea Now
Management
Companies providing management services to businesses. The Management theme has 39 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 Management Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Westamerica Stock
When determining whether Westamerica Bancorporation offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Westamerica Bancorporation's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Westamerica Bancorporation Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Westamerica Bancorporation Stock:Check out Your Current Watchlist. For more detail on how to invest in Westamerica Stock please use our How to Invest in Westamerica Bancorporation guide.You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
To fully project Westamerica Bancorporation's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Westamerica Bancorporation 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 Westamerica Bancorporation's income statement, its balance sheet, and the statement of cash flows.