American Woodmark Profit Margin vs. Operating Margin
| AHQ Stock | EUR 78.00 0.00 0.00% |
For American Woodmark profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Woodmark to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Woodmark utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Woodmark's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Woodmark over time as well as its relative position and ranking within its peers.
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American Woodmark Operating Margin vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining American Woodmark's current stock value. Our valuation model uses many indicators to compare American Woodmark value to that of its competitors to determine the firm's financial worth. American Woodmark is rated third in profit margin category among its peers. It also is rated third in operating margin category among its peers reporting about 1.50 of Operating Margin per Profit Margin. 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 American Woodmark's earnings, one of the primary drivers of an investment's value.American Operating Margin 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.
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| = | 0.04 % |
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.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
American Woodmark |
| = | 0.06 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
American Operating Margin Comparison
American Woodmark is currently under evaluation in operating margin category among its peers.
American Woodmark Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in American Woodmark, profitability is also one of the essential criteria for including it into their portfolios because, without profit, American Woodmark will eventually generate negative long term returns. The profitability progress is the general direction of American Woodmark's change in net profit over the period of time. It can combine multiple indicators of American Woodmark, 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.
American Woodmark Corporation manufactures and distributes kitchen, bath, and home organization products for the remodeling and new home construction markets in the United States. American Woodmark Corporation was founded in 1980 and is headquartered in Winchester, Virginia. American Woodmark is traded on Frankfurt Stock Exchange in Germany.
American Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on American Woodmark. 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 American Woodmark 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 American Woodmark's important profitability drivers and their relationship over time.
Use American Woodmark 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 American Woodmark 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 American Woodmark will appreciate offsetting losses from the drop in the long position's value.American Woodmark Pair Trading
American Woodmark Pair Trading Analysis
The ability to find closely correlated positions to American Woodmark could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Woodmark 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 American Woodmark - 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 American Woodmark to buy it.
The correlation of American Woodmark 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 American Woodmark moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Woodmark 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 American Woodmark 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 American Woodmark position
In addition to having American Woodmark 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 Health Management Thematic Idea Now
Health Management
Major hospitals and healthcare providers. The Health Management theme has 41 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 Health Management Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in American Stock
When determining whether American Woodmark is a strong investment it is important to analyze American Woodmark's 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 American Woodmark's future performance. For an informed investment choice regarding American Stock, refer to the following important reports:Check out Trending Equities. For more detail on how to invest in American Stock please use our How to Invest in American Woodmark guide.You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
To fully project American Woodmark's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of American Woodmark 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 American Woodmark's income statement, its balance sheet, and the statement of cash flows.