Scandinavian Tobacco Net Income vs. Beta

0RES Stock   95.85  0.24  0.25%   
Considering Scandinavian Tobacco's profitability and operating efficiency indicators, Scandinavian Tobacco Group may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Scandinavian Tobacco's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2010-12-31
Previous Quarter
779.6 M
Current Value
766.5 M
Quarterly Volatility
36 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
For Scandinavian Tobacco profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Scandinavian Tobacco to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Scandinavian Tobacco Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Scandinavian Tobacco's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Scandinavian Tobacco Group 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 Scandinavian Tobacco's value and its price as these two are different measures arrived at by different means. Investors typically determine if Scandinavian Tobacco is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Scandinavian Tobacco'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.

Scandinavian Tobacco Beta vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Scandinavian Tobacco's current stock value. Our valuation model uses many indicators to compare Scandinavian Tobacco value to that of its competitors to determine the firm's financial worth.
Scandinavian Tobacco Group is number one stock in net income category among its peers. It also is number one stock in beta category among its peers . The ratio of Net Income to Beta for Scandinavian Tobacco Group is about  1,791,626,214 . At this time, Scandinavian Tobacco's Net Income is comparatively 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 Scandinavian Tobacco's earnings, one of the primary drivers of an investment's value.

Scandinavian Beta vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Scandinavian Tobacco

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
1.48 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.

Scandinavian Tobacco

Beta

 = 

Covariance

Variance

 = 
0.82
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.

Scandinavian Beta Comparison

Scandinavian Tobacco is currently under evaluation in beta category among its peers.

Beta Analysis

As returns on the market increase, Scandinavian Tobacco's returns are expected to increase less than the market. However, during the bear market, the loss of holding Scandinavian Tobacco is expected to be smaller as well.

Scandinavian Tobacco Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Scandinavian Tobacco, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Scandinavian Tobacco will eventually generate negative long term returns. The profitability progress is the general direction of Scandinavian Tobacco's change in net profit over the period of time. It can combine multiple indicators of Scandinavian Tobacco, 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 ReportedProjected for Next Year
Interest Income6.9 M6.6 M
Operating Income1.1 BB
Income Before Tax1.1 B959.9 M
Net Income Applicable To Common Shares1.7 B998 M
Net Income1.7 B998 M
Income Tax Expense437.2 M282.4 M
Change To Netincome-64.9 M-61.6 M

Scandinavian Profitability Driver Comparison

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

Use Scandinavian Tobacco 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 Scandinavian Tobacco 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 Scandinavian Tobacco will appreciate offsetting losses from the drop in the long position's value.

Scandinavian Tobacco Pair Trading

Scandinavian Tobacco Group Pair Trading Analysis

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

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Additional Tools for Scandinavian Stock Analysis

When running Scandinavian Tobacco's price analysis, check to measure Scandinavian Tobacco'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 Scandinavian Tobacco is operating at the current time. Most of Scandinavian Tobacco's value examination focuses on studying past and present price action to predict the probability of Scandinavian Tobacco's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Scandinavian Tobacco's price. Additionally, you may evaluate how the addition of Scandinavian Tobacco to your portfolios can decrease your overall portfolio volatility.