Advanced Medical Price To Book vs. Return On Equity
| AMS Stock | 197.60 1.80 0.90% |
For Advanced Medical profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Advanced Medical to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Advanced Medical Solutions utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Advanced Medical's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Advanced Medical Solutions over time as well as its relative position and ranking within its peers.
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Advanced Medical Sol Return On Equity vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Advanced Medical's current stock value. Our valuation model uses many indicators to compare Advanced Medical value to that of its competitors to determine the firm's financial worth. Advanced Medical Solutions is number one stock in price to book category among its peers. It also is number one stock in return on equity category among its peers reporting about 0.03 of Return On Equity per Price To Book. The ratio of Price To Book to Return On Equity for Advanced Medical Solutions is roughly 38.06 . 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 Advanced Medical's earnings, one of the primary drivers of an investment's value.Advanced Return On Equity vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Advanced Medical |
| = | 1.75 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.
Advanced Medical |
| = | 0.0459 |
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.
Advanced Return On Equity Comparison
Advanced Medical is currently under evaluation in return on equity category among its peers.
Advanced Medical Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Advanced Medical, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Advanced Medical will eventually generate negative long term returns. The profitability progress is the general direction of Advanced Medical's change in net profit over the period of time. It can combine multiple indicators of Advanced Medical, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 22.7 M | 23.8 M | |
| Operating Income | 18.9 M | 19.8 M | |
| Income Before Tax | 21.2 M | 22.2 M | |
| Total Other Income Expense Net | 2.3 M | 2.4 M | |
| Net Income | 15.9 M | 16.7 M | |
| Income Tax Expense | 5.3 M | 5.5 M | |
| Net Income From Continuing Ops | 15.9 M | 17.8 M | |
| Net Income Applicable To Common Shares | 23.5 M | 17.1 M | |
| Net Interest Income | 2.1 M | 2.2 M | |
| Interest Income | 2.5 M | 2.6 M | |
| Change To Netincome | 4.1 M | 2.4 M |
Advanced Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Advanced Medical. 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 Advanced Medical 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 Advanced Medical's important profitability drivers and their relationship over time.
Use Advanced Medical 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 Advanced Medical 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 Advanced Medical will appreciate offsetting losses from the drop in the long position's value.Advanced Medical Pair Trading
Advanced Medical Solutions Pair Trading Analysis
The ability to find closely correlated positions to Advanced Medical could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Advanced Medical 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 Advanced Medical - 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 Advanced Medical Solutions to buy it.
The correlation of Advanced Medical 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 Advanced Medical moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Advanced Medical Sol 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 Advanced Medical 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 Advanced Medical position
In addition to having Advanced Medical 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 Machinery Thematic Idea Now
Machinery
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Machinery theme has 61 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 Machinery Theme or any other thematic opportunities.
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Other Information on Investing in Advanced Stock
To fully project Advanced Medical's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Advanced Medical Sol 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 Advanced Medical's income statement, its balance sheet, and the statement of cash flows.