Korea Real Operating Margin vs. Return On Equity

034830 Stock  KRW 1,007  8.00  0.79%   
Taking into consideration Korea Real's profitability measurements, Korea Real Estate 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 Korea Real's ability to earn profits and add value for shareholders.
For Korea Real profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Korea Real to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Korea Real Estate utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Korea Real's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Korea Real Estate 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 Korea Real's value and its price as these two are different measures arrived at by different means. Investors typically determine if Korea Real is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Korea Real'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.

Korea Real Estate Return On Equity vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Korea Real's current stock value. Our valuation model uses many indicators to compare Korea Real value to that of its competitors to determine the firm's financial worth.
Korea Real Estate is number one stock in operating margin category among its peers. It also is number one stock in return on equity category among its peers reporting about  0.24  of Return On Equity per Operating Margin. The ratio of Operating Margin to Return On Equity for Korea Real Estate is roughly  4.24 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Korea Real by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Korea Real'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.

Korea Return On Equity 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.

Korea Real

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
67.08 %
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.
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.

Korea Real

Return On Equity

 = 

Net Income

Total Equity

 = 
15.83
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.

Korea Return On Equity Comparison

Korea Real is currently under evaluation in return on equity category among its peers.

Korea Real Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Korea Real, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Korea Real will eventually generate negative long term returns. The profitability progress is the general direction of Korea Real's change in net profit over the period of time. It can combine multiple indicators of Korea Real, 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.
KOREIT, a real estate investment trust, engages in the investment, development, and management of real estate properties in South Korea.

Korea Profitability Driver Comparison

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

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

Korea Real Pair Trading

Korea Real Estate Pair Trading Analysis

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

In addition to having Korea Real 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 Large Blend Funds Thematic Idea Now

Large Blend Funds
Large Blend Funds Theme
Fund or Etfs that invest in stocks of large organizations that have characteristics of both growth and value companies. The Large Blend Funds theme has 46 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 Large Blend Funds Theme or any other thematic opportunities.
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Other Information on Investing in Korea Stock

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