Lanner Electronics Return On Equity vs. Price To Sales

6245 Stock  TWD 93.30  0.70  0.74%   
Based on Lanner Electronics' profitability indicators, Lanner Electronics 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 Lanner Electronics' ability to earn profits and add value for shareholders.
For Lanner Electronics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lanner Electronics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lanner Electronics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lanner Electronics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lanner Electronics 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 Lanner Electronics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Lanner Electronics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lanner Electronics' 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.

Lanner Electronics Price To Sales vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lanner Electronics's current stock value. Our valuation model uses many indicators to compare Lanner Electronics value to that of its competitors to determine the firm's financial worth.
Lanner Electronics is number one stock in return on equity category among its peers. It also is number one stock in price to sales category among its peers fabricating about  5.26  of Price To Sales 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 Lanner Electronics' earnings, one of the primary drivers of an investment's value.

Lanner Price To Sales 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.

Lanner Electronics

Return On Equity

 = 

Net Income

Total Equity

 = 
0.25
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.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Lanner Electronics

P/S

 = 

MV Per Share

Revenue Per Share

 = 
1.32 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Lanner Price To Sales Comparison

Lanner Electronics is currently under evaluation in price to sales category among its peers.

Lanner Electronics Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Lanner Electronics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lanner Electronics will eventually generate negative long term returns. The profitability progress is the general direction of Lanner Electronics' change in net profit over the period of time. It can combine multiple indicators of Lanner Electronics, 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.
Lanner Electronics Inc. provides design, engineering, and manufacturing services for advanced network appliances and rugged applied computing platforms for system integrators, service providers, and application developers worldwide. Lanner Electronics Inc. was founded in 1986 and is headquartered in New Taipei City, Taiwan. LANNER ELECTRONICS operates under Computer Systems classification in Taiwan and is traded on Taiwan OTC Exchange.

Lanner Profitability Driver Comparison

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

Use Lanner Electronics 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 Lanner Electronics 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 Lanner Electronics will appreciate offsetting losses from the drop in the long position's value.

Lanner Electronics Pair Trading

Lanner Electronics Pair Trading Analysis

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

In addition to having Lanner Electronics 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 Communication Services Thematic Idea Now

Communication Services
Communication Services Theme
Companies that provide networking, telecom, and long distance services. The Communication Services theme has 37 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 Communication Services Theme or any other thematic opportunities.
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Additional Tools for Lanner Stock Analysis

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