CNH Industrial Return On Equity vs. Beta
| 0QGU Stock | 10.55 1.45 12.08% |
For CNH Industrial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CNH Industrial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CNH Industrial NV utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CNH Industrial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CNH Industrial NV over time as well as its relative position and ranking within its peers.
CNH |
CNH Industrial NV Beta vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining CNH Industrial's current stock value. Our valuation model uses many indicators to compare CNH Industrial value to that of its competitors to determine the firm's financial worth. CNH Industrial NV is number one stock in return on equity category among its peers. It also is number one stock in beta category among its peers totaling about 7.20 of Beta per Return On Equity. 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 CNH Industrial's earnings, one of the primary drivers of an investment's value.CNH Beta 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.
CNH Industrial |
| = | 0.22 |
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.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
CNH Industrial |
| = | 1.6 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
CNH Beta Comparison
CNH Industrial is currently under evaluation in beta category among its peers.
Beta Analysis
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, CNH Industrial will likely underperform.
CNH Industrial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in CNH Industrial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CNH Industrial will eventually generate negative long term returns. The profitability progress is the general direction of CNH Industrial's change in net profit over the period of time. It can combine multiple indicators of CNH Industrial, 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 | ||
| Interest Income | 243 M | 372 M | |
| Operating Income | -432 M | -410.4 M | |
| Income Before Tax | -675 M | -641.2 M | |
| Net Income Applicable To Common Shares | 2.3 B | 2.5 B | |
| Net Income | 2.4 B | 2.5 B | |
| Income Tax Expense | 859 M | 902 M | |
| Change To Netincome | 109.2 M | 103.8 M |
CNH Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on CNH Industrial. 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 CNH Industrial 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 CNH Industrial's important profitability drivers and their relationship over time.
Use CNH Industrial 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 CNH Industrial 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 CNH Industrial will appreciate offsetting losses from the drop in the long position's value.CNH Industrial Pair Trading
CNH Industrial NV Pair Trading Analysis
The ability to find closely correlated positions to CNH Industrial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CNH Industrial 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 CNH Industrial - 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 CNH Industrial NV to buy it.
The correlation of CNH Industrial 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 CNH Industrial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CNH Industrial NV 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 CNH Industrial 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 CNH Industrial position
In addition to having CNH Industrial 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 Market Neutral Funds Thematic Idea Now
Market Neutral Funds
Funds or Etfs that invest in both long and short positions of different entities to enhance returns from broad market movements over time. The Market Neutral Funds theme has 41 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 Market Neutral Funds Theme or any other thematic opportunities.
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Additional Tools for CNH Stock Analysis
When running CNH Industrial's price analysis, check to measure CNH Industrial's 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 CNH Industrial is operating at the current time. Most of CNH Industrial's value examination focuses on studying past and present price action to predict the probability of CNH Industrial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CNH Industrial's price. Additionally, you may evaluate how the addition of CNH Industrial to your portfolios can decrease your overall portfolio volatility.