CrowdStrike Holdings Profit Margin vs. Return On Equity

45C Stock  EUR 350.60  7.55  2.20%   
Based on CrowdStrike Holdings' profitability indicators, CrowdStrike Holdings 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 CrowdStrike Holdings' ability to earn profits and add value for shareholders.
For CrowdStrike Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CrowdStrike Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CrowdStrike Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CrowdStrike Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CrowdStrike Holdings over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in CrowdStrike Stock please use our How to Invest in CrowdStrike Holdings guide.
Please note, there is a significant difference between CrowdStrike Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if CrowdStrike Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CrowdStrike Holdings' 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.

CrowdStrike Holdings Return On Equity vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining CrowdStrike Holdings's current stock value. Our valuation model uses many indicators to compare CrowdStrike Holdings value to that of its competitors to determine the firm's financial worth.
CrowdStrike Holdings is number one stock in profit margin category among its peers. It also is number one stock in return on equity category among its peers . 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 CrowdStrike Holdings' earnings, one of the primary drivers of an investment's value.

CrowdStrike Return On Equity vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

CrowdStrike Holdings

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.09) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
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.

CrowdStrike Holdings

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.15
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.

CrowdStrike Return On Equity Comparison

CrowdStrike Holdings is currently under evaluation in return on equity category among its peers.

CrowdStrike Holdings Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in CrowdStrike Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CrowdStrike Holdings will eventually generate negative long term returns. The profitability progress is the general direction of CrowdStrike Holdings' change in net profit over the period of time. It can combine multiple indicators of CrowdStrike Holdings, 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.
CrowdStrike Holdings, Inc. provides cloud-delivered solutions for endpoint and cloud workload protection in the United States, Australia, Germany, India, Israel, Romania, and the United Kingdom. CrowdStrike Holdings, Inc. was incorporated in 2011 and is headquartered in Sunnyvale, California. CROWDSTRIKE HLD operates under SoftwareInfrastructure classification in Germany and is traded on Frankfurt Stock Exchange. It employs 4224 people.

CrowdStrike Profitability Driver Comparison

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

Use CrowdStrike Holdings 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 CrowdStrike Holdings 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 CrowdStrike Holdings will appreciate offsetting losses from the drop in the long position's value.

CrowdStrike Holdings Pair Trading

CrowdStrike Holdings Pair Trading Analysis

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

In addition to having CrowdStrike Holdings 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.

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Target Risk ETFs
Target Risk ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Target Risk ETFs theme has 32 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 Target Risk ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in CrowdStrike Stock

When determining whether CrowdStrike Holdings is a strong investment it is important to analyze CrowdStrike Holdings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CrowdStrike Holdings' future performance. For an informed investment choice regarding CrowdStrike Stock, refer to the following important reports:
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For more detail on how to invest in CrowdStrike Stock please use our How to Invest in CrowdStrike Holdings guide.
You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
To fully project CrowdStrike Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CrowdStrike Holdings 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 CrowdStrike Holdings' income statement, its balance sheet, and the statement of cash flows.
Potential CrowdStrike Holdings investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although CrowdStrike Holdings investors may work on each financial statement separately, they are all related. The changes in CrowdStrike Holdings's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on CrowdStrike Holdings'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.