Argan SA Return On Equity vs. Price To Book
| ARG Stock | EUR 63.00 1.60 2.48% |
For Argan SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Argan SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Argan SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Argan SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Argan SA over time as well as its relative position and ranking within its peers.
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Argan SA Price To Book vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Argan SA's current stock value. Our valuation model uses many indicators to compare Argan SA value to that of its competitors to determine the firm's financial worth. Argan SA is number one stock in return on equity category among its peers. It also is number one stock in price to book category among its peers fabricating about 2.40 of Price To Book per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Argan SA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Argan SA's 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.Argan Price To Book 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.
Argan SA |
| = | 0.31 |
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 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.
Argan SA |
| = | 0.73 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.
Argan Price To Book Comparison
Argan SA is currently under evaluation in price to book category among its peers.
Argan SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Argan SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Argan SA will eventually generate negative long term returns. The profitability progress is the general direction of Argan SA's change in net profit over the period of time. It can combine multiple indicators of Argan 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.
Argan SA engages in designing, building, developing, owning, leasing, and managing logistical platforms in France. The company was founded in 1993 and is based in Neuilly sur Seine, France. ARGAN operates under REIT - Diversified classification in France and is traded on Paris Stock Exchange. It employs 24 people.
Argan Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Argan 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 Argan 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 Argan SA's important profitability drivers and their relationship over time.
Use Argan 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 Argan 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 Argan SA will appreciate offsetting losses from the drop in the long position's value.Argan SA Pair Trading
Argan SA Pair Trading Analysis
The ability to find closely correlated positions to Argan 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 Argan 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 Argan 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 Argan SA to buy it.
The correlation of Argan 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 Argan SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Argan 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 Argan 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.Use Investing Themes to Complement your Argan SA position
In addition to having Argan 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 Petroleum and Natural Gas Thematic Idea Now
Petroleum and Natural Gas
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Petroleum and Natural Gas 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 Petroleum and Natural Gas Theme or any other thematic opportunities.
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Other Information on Investing in Argan Stock
To fully project Argan SA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Argan 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 Argan SA's income statement, its balance sheet, and the statement of cash flows.