Transition Metals Return On Equity vs. Current Valuation
| XTM Stock | CAD 0.05 0.01 11.11% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (0.86) | Current Value (0.82) | Quarterly Volatility 0.35849351 |
For Transition Metals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Transition Metals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Transition Metals Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Transition Metals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Transition Metals Corp over time as well as its relative position and ranking within its peers.
Transition |
Transition Metals Corp Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Transition Metals's current stock value. Our valuation model uses many indicators to compare Transition Metals value to that of its competitors to determine the firm's financial worth. Transition Metals Corp is rated second in return on equity category among its peers. It is rated second in current valuation category among its peers . At this time, Transition Metals' Return On Equity is fairly stable compared to the past year. 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 Transition Metals' earnings, one of the primary drivers of an investment's value.Transition Current Valuation 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.
Transition Metals |
| = | -0.35 |
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.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Transition Metals |
| = | 1.9 M |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Transition Current Valuation vs Competition
Transition Metals Corp is rated second in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Materials industry is at this time estimated at about 4.69 Billion. Transition Metals adds roughly 1.9 Million in current valuation claiming only tiny portion of all equities under Materials industry.
Transition Metals Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Transition Metals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Transition Metals will eventually generate negative long term returns. The profitability progress is the general direction of Transition Metals' change in net profit over the period of time. It can combine multiple indicators of Transition Metals, 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.
| Last Reported | Projected for Next Year | ||
| Operating Income | -2 M | -2.1 M | |
| Net Loss | -2.6 M | -2.8 M | |
| Income Before Tax | -2.2 M | -2.3 M | |
| Total Other Income Expense Net | -122.2 K | -116.1 K | |
| Net Loss | -5.2 M | -4.9 M | |
| Net Loss | -2.1 M | -2 M | |
| Income Tax Expense | 469.4 K | 625.2 K | |
| Net Interest Income | 3.1 K | 3.5 K | |
| Interest Income | 3.1 K | 3.5 K | |
| Change To Netincome | 2.5 M | 2.7 M | |
| Net Loss | (0.03) | (0.04) | |
| Income Quality | 0.82 | 0.86 | |
| Net Income Per E B T | 1.40 | 1.43 |
Transition Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Transition Metals. 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 Transition Metals 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 Transition Metals' important profitability drivers and their relationship over time.
Use Transition Metals 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 Transition Metals 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 Transition Metals will appreciate offsetting losses from the drop in the long position's value.Transition Metals Pair Trading
Transition Metals Corp Pair Trading Analysis
The ability to find closely correlated positions to Transition Metals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Transition Metals 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 Transition Metals - 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 Transition Metals Corp to buy it.
The correlation of Transition Metals 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 Transition Metals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Transition Metals Corp 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 Transition Metals 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 Transition Metals position
In addition to having Transition Metals 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 Tools for Transition Stock Analysis
When running Transition Metals' price analysis, check to measure Transition Metals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Transition Metals is operating at the current time. Most of Transition Metals' value examination focuses on studying past and present price action to predict the probability of Transition Metals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Transition Metals' price. Additionally, you may evaluate how the addition of Transition Metals to your portfolios can decrease your overall portfolio volatility.