Automotive Properties Profit Margin vs. Return On Equity

APR-UN Stock  CAD 11.15  0.35  3.04%   
Based on Automotive Properties' profitability indicators, Automotive Properties' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Automotive Properties' ability to earn profits and add value for shareholders.

Automotive Properties Net Profit Margin

0.94

At present, Automotive Properties' Days Sales Outstanding is projected to slightly grow based on the last few years of reporting. The current year's EV To Sales is expected to grow to 19.02, whereas Price To Sales Ratio is forecasted to decline to 5.43. At present, Automotive Properties' Accumulated Other Comprehensive Income is projected to increase significantly based on the last few years of reporting. The current year's Operating Income is expected to grow to about 91.4 M, whereas Income Before Tax is forecasted to decline to about 30.5 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.670.8479
Significantly Down
Pretty Stable
Operating Profit Margin0.750.7856
Sufficiently Down
Slightly volatile
For Automotive Properties profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Automotive Properties to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Automotive Properties Real utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Automotive Properties's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Automotive Properties Real 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 Automotive Properties' value and its price as these two are different measures arrived at by different means. Investors typically determine if Automotive Properties is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Automotive Properties' 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.

Automotive Properties Return On Equity vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Automotive Properties's current stock value. Our valuation model uses many indicators to compare Automotive Properties value to that of its competitors to determine the firm's financial worth.
Automotive Properties Real 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  0.15  of Return On Equity per Profit Margin. The ratio of Profit Margin to Return On Equity for Automotive Properties Real is roughly  6.50 . At present, Automotive Properties' Net Profit Margin is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value Automotive Properties by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Automotive Properties' Stock. 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.

Automotive 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.

Automotive Properties

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.76 %
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.

Automotive Properties

Return On Equity

 = 

Net Income

Total Equity

 = 
0.12
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.

Automotive Return On Equity Comparison

Automotive Properties is currently under evaluation in return on equity category among its peers.

Automotive Properties Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Automotive Properties, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Automotive Properties will eventually generate negative long term returns. The profitability progress is the general direction of Automotive Properties' change in net profit over the period of time. It can combine multiple indicators of Automotive Properties, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income540 M567 M
Operating Income87.1 M91.4 M
Income Before Tax51 M30.5 M
Total Other Income Expense Net-36.1 M-34.3 M
Net Income51 M30.2 M
Income Tax Expense38.9 M40.8 M
Net Income From Continuing Ops51 M40.6 M
Net Income Applicable To Common Shares95.9 M100.7 M
Net Interest Income-24.5 M-23.3 M
Change To Netincome-17.2 M-16.4 M
Net Income Per Share 1.04  0.87 
Income Quality 1.46  1.53 
Net Income Per E B T 1.29  1.36 

Automotive Profitability Driver Comparison

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

Use Automotive Properties 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 Automotive Properties 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 Automotive Properties will appreciate offsetting losses from the drop in the long position's value.

Automotive Properties Pair Trading

Automotive Properties Real Pair Trading Analysis

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

In addition to having Automotive Properties 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.

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Consumer Staples ETFs
Consumer Staples ETFs Theme
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Other Information on Investing in Automotive Stock

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