Altex Industries Profit Margin vs. Return On Equity
| ALTX Stock | USD 0.30 0.06 25.00% |
For Altex Industries profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Altex Industries to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Altex Industries utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Altex Industries's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Altex Industries over time as well as its relative position and ranking within its peers.
Altex |
Altex Industries Return On Equity vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Altex Industries's current stock value. Our valuation model uses many indicators to compare Altex Industries value to that of its competitors to determine the firm's financial worth. Altex Industries 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 reporting about 0.02 of Return On Equity per Profit Margin. The ratio of Profit Margin to Return On Equity for Altex Industries is roughly 44.29 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Altex Industries by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Altex Industries' Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Altex 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.
Altex Industries |
| = | 10.04 % |
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.
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.
Altex Industries |
| = | 0.23 |
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.
Altex Return On Equity Comparison
Altex Industries is currently under evaluation in return on equity category among its peers.
Altex Industries Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Altex Industries, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Altex Industries will eventually generate negative long term returns. The profitability progress is the general direction of Altex Industries' change in net profit over the period of time. It can combine multiple indicators of Altex Industries, 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.
Altex Industries, Inc., through its subsidiary, Altex Oil Corporation, owns interests in productive onshore oil and gas properties located in Utah and Wyoming. The company was incorporated in 1985 and is based in Denver, Colorado. Altex Industries operates under Oil Gas EP classification in the United States and is traded on OTC Exchange.
Altex Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Altex Industries. 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 Altex Industries 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 Altex Industries' important profitability drivers and their relationship over time.
Use Altex Industries 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 Altex Industries 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 Altex Industries will appreciate offsetting losses from the drop in the long position's value.Altex Industries Pair Trading
Altex Industries Pair Trading Analysis
The ability to find closely correlated positions to Altex Industries could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Altex Industries 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 Altex Industries - 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 Altex Industries to buy it.
The correlation of Altex Industries 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 Altex Industries moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Altex Industries 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 Altex Industries 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 Altex Industries position
In addition to having Altex Industries 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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Additional Tools for Altex Pink Sheet Analysis
When running Altex Industries' price analysis, check to measure Altex Industries' 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 Altex Industries is operating at the current time. Most of Altex Industries' value examination focuses on studying past and present price action to predict the probability of Altex Industries' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Altex Industries' price. Additionally, you may evaluate how the addition of Altex Industries to your portfolios can decrease your overall portfolio volatility.