Accor SA Return On Equity vs. Price To Sales

ACR Stock  EUR 45.96  0.05  0.11%   
Based on the key profitability measurements obtained from Accor SA's financial statements, Accor SA 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 Accor SA's ability to earn profits and add value for shareholders.
For Accor SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Accor SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Accor SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Accor SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Accor SA 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 Accor SA's value and its price as these two are different measures arrived at by different means. Investors typically determine if Accor SA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Accor SA'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.

Accor SA Price To Sales vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Accor SA's current stock value. Our valuation model uses many indicators to compare Accor SA value to that of its competitors to determine the firm's financial worth.
Accor SA is rated below average in return on equity category among its peers. It is rated below average in price to sales category among its peers fabricating about  27.33  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 Accor SA's earnings, one of the primary drivers of an investment's value.

Accor 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.

Accor SA

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0768
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.

Accor SA

P/S

 = 

MV Per Share

Revenue Per Share

 = 
2.10 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.

Accor Price To Sales Comparison

Accor SA is rated below average in price to sales category among its peers.

Accor SA Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Accor SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Accor SA will eventually generate negative long term returns. The profitability progress is the general direction of Accor SA's change in net profit over the period of time. It can combine multiple indicators of Accor SA, 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.
It operates through three segments HotelServices, Hotel Assets Others, and New Businesses. Accor SA was founded in 1967 and is headquartered in Issy-les-Moulineaux, France. Accor SA operates under Lodging classification in Germany and is traded on Frankfurt Stock Exchange. It employs 22935 people.

Accor Profitability Driver Comparison

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

Use Accor SA 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 Accor SA 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 Accor SA will appreciate offsetting losses from the drop in the long position's value.

Accor SA Pair Trading

Accor SA Pair Trading Analysis

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

In addition to having Accor SA 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 Apparel Thematic Idea Now

Apparel
Apparel Theme
Companies manufacturing textile accessories and apparel products. The Apparel theme has 42 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 Apparel Theme or any other thematic opportunities.
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Other Information on Investing in Accor Stock

To fully project Accor SA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Accor SA 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 Accor SA's income statement, its balance sheet, and the statement of cash flows.
Potential Accor SA investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Accor SA investors may work on each financial statement separately, they are all related. The changes in Accor SA's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Accor SA'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.