Watsco Shares Owned By Insiders vs. EBITDA
| WC3 Stock | EUR 466.80 3.40 0.73% |
For Watsco profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Watsco to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Watsco Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Watsco's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Watsco Inc over time as well as its relative position and ranking within its peers.
Watsco |
Watsco Inc EBITDA vs. Shares Owned By Insiders Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Watsco's current stock value. Our valuation model uses many indicators to compare Watsco value to that of its competitors to determine the firm's financial worth. Watsco Inc is rated first in shares owned by insiders category among its peers. It is rated first in ebitda category among its peers totaling about 1,187,968,571 of EBITDA per Shares Owned By Insiders. 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 Watsco's earnings, one of the primary drivers of an investment's value.Watsco EBITDA vs. Shares Owned By Insiders
Shares Owned by Insiders show the percentage of outstanding shares owned by insiders (such as principal officers or members of the board of directors) or private individuals and entities with over 5% of the total shares outstanding. Company executives or private individuals with access to insider information share information about a firm's operations that is not available to the general public.
Watsco |
| = | 0.70 % |
Although the research on effects of insider trading on prices and volatility is still relatively inconclusive, and investors are advised to pay close attention to the distribution of equities among company's stakeholders to avoid many problems associated with the disclosure of price-sensitive information.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Watsco |
| = | 831.58 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Watsco EBITDA Comparison
Watsco is currently under evaluation in ebitda category among its peers.
Watsco Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Watsco, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Watsco will eventually generate negative long term returns. The profitability progress is the general direction of Watsco's change in net profit over the period of time. It can combine multiple indicators of Watsco, 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.
Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, and refrigeration equipment and related parts and supplies in the United States, Canada, Mexico, and Puerto Rico. Watsco, Inc. was founded in 1945 and is headquartered in Miami, Florida. WATSCO INC operates under Industrial Distribution classification in Germany and is traded on Frankfurt Stock Exchange. It employs 5200 people.
Watsco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Watsco. 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 Watsco 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 Watsco's important profitability drivers and their relationship over time.
Use Watsco 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 Watsco 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 Watsco will appreciate offsetting losses from the drop in the long position's value.Watsco Pair Trading
Watsco Inc Pair Trading Analysis
The ability to find closely correlated positions to Watsco could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Watsco 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 Watsco - 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 Watsco Inc to buy it.
The correlation of Watsco 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 Watsco moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Watsco Inc 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 Watsco 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 Watsco position
In addition to having Watsco 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?
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Additional Information and Resources on Investing in Watsco Stock
When determining whether Watsco Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Watsco'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 Watsco Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Watsco Inc Stock:Check out Your Current Watchlist. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
To fully project Watsco's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Watsco Inc 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 Watsco's income statement, its balance sheet, and the statement of cash flows.