Catalent EBITDA vs. Operating Margin
| 0C8 Stock | EUR 59.93 0.00 0.00% |
For Catalent profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Catalent to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Catalent utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Catalent's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Catalent over time as well as its relative position and ranking within its peers.
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Catalent Operating Margin vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Catalent's current stock value. Our valuation model uses many indicators to compare Catalent value to that of its competitors to determine the firm's financial worth. Catalent is rated below average in ebitda category among its peers. It is rated below average in operating margin category among its peers . The ratio of EBITDA to Operating Margin for Catalent is about 7,513,586,957 . 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 Catalent's earnings, one of the primary drivers of an investment's value.Catalent Operating Margin vs. EBITDA
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.
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| = | 1.11 B |
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.
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.
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| = | 0.15 % |
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.
Catalent Operating Margin Comparison
Catalent is rated below average in operating margin category among its peers.
Catalent Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Catalent, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Catalent will eventually generate negative long term returns. The profitability progress is the general direction of Catalent's change in net profit over the period of time. It can combine multiple indicators of Catalent, 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.
Catalent, Inc. provides delivery technologies and development solutions for drugs, biologics, and consumer and animal health products worldwide. Catalent, Inc. was founded in 2007 and is headquartered in Somerset, New Jersey. Catalent operates under Drug Manufacturers - Specialty Generic classification in Germany and is traded on Frankfurt Stock Exchange. It employs 11000 people.
Catalent Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Catalent. 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 Catalent 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 Catalent's important profitability drivers and their relationship over time.
Use Catalent 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 Catalent 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 Catalent will appreciate offsetting losses from the drop in the long position's value.Catalent Pair Trading
Catalent Pair Trading Analysis
The ability to find closely correlated positions to Catalent could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Catalent 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 Catalent - 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 Catalent to buy it.
The correlation of Catalent 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 Catalent moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Catalent 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 Catalent 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 Catalent position
In addition to having Catalent 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 Services Thematic Idea Now
Services
Companies involved in delivering services to business or consumers across different industries and sectors. The Services theme has 30 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 Services Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Catalent Stock
When determining whether Catalent is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Catalent Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Catalent Stock. Highlighted below are key reports to facilitate an investment decision about Catalent Stock:Check out Trending Equities. For more detail on how to invest in Catalent Stock please use our How to Invest in Catalent 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 Catalent's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Catalent 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 Catalent's income statement, its balance sheet, and the statement of cash flows.