Clarkson PLC Price To Earning vs. Return On Asset
| 1DH Stock | EUR 46.60 1.00 2.10% |
For Clarkson PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Clarkson PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Clarkson PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Clarkson PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Clarkson PLC over time as well as its relative position and ranking within its peers.
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Clarkson PLC Return On Asset vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Clarkson PLC's current stock value. Our valuation model uses many indicators to compare Clarkson PLC value to that of its competitors to determine the firm's financial worth. Clarkson PLC is rated below average in price to earning category among its peers. It is rated below average in return on asset category among its peers reporting about 0.29 of Return On Asset per Price To Earning. The ratio of Price To Earning to Return On Asset for Clarkson PLC is roughly 3.49 . 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 Clarkson PLC's earnings, one of the primary drivers of an investment's value.Clarkson Return On Asset vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
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| = | 0.31 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
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| = | 0.0888 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Clarkson Return On Asset Comparison
Clarkson PLC is rated fifth in return on asset category among its peers.
Clarkson PLC Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Clarkson PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Clarkson PLC will eventually generate negative long term returns. The profitability progress is the general direction of Clarkson PLC's change in net profit over the period of time. It can combine multiple indicators of Clarkson PLC, 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.
Clarkson PLC provides integrated shipping services worldwide. The company was founded in 1852 and is headquartered in London, the United Kingdom. CLARKSON PLC operates under Marine Shipping classification in Germany and is traded on Frankfurt Stock Exchange. It employs 1600 people.
Clarkson Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Clarkson PLC. 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 Clarkson PLC 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 Clarkson PLC's important profitability drivers and their relationship over time.
Use Clarkson PLC 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 Clarkson PLC 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 Clarkson PLC will appreciate offsetting losses from the drop in the long position's value.Clarkson PLC Pair Trading
Clarkson PLC Pair Trading Analysis
The ability to find closely correlated positions to Clarkson PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Clarkson PLC 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 Clarkson PLC - 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 Clarkson PLC to buy it.
The correlation of Clarkson PLC 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 Clarkson PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Clarkson PLC 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 Clarkson PLC 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 Clarkson PLC position
In addition to having Clarkson PLC 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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Aircraft
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Aircraft theme has 44 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 Aircraft Theme or any other thematic opportunities.
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Other Information on Investing in Clarkson Stock
To fully project Clarkson PLC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Clarkson PLC 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 Clarkson PLC's income statement, its balance sheet, and the statement of cash flows.