Ashtead Group Net Income vs. Operating Margin

ASHTF Stock  USD 81.10  0.20  0.25%   
Considering Ashtead Group's profitability and operating efficiency indicators, Ashtead Group plc may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Ashtead Group's ability to earn profits and add value for shareholders.
For Ashtead Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ashtead Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ashtead Group plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ashtead Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ashtead Group plc 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 Ashtead Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ashtead Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ashtead Group's 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.

Ashtead Group plc Operating Margin vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Ashtead Group's current stock value. Our valuation model uses many indicators to compare Ashtead Group value to that of its competitors to determine the firm's financial worth.
Ashtead Group plc is number one stock in net income category among its peers. It also is number one stock in operating margin category among its peers . The ratio of Net Income to Operating Margin for Ashtead Group plc is about  4,958,779,231 . 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 Ashtead Group's earnings, one of the primary drivers of an investment's value.

Ashtead Operating Margin vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Ashtead Group

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
1.25 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.

Ashtead Group

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.25 %
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.

Ashtead Operating Margin Comparison

Ashtead Group is currently under evaluation in operating margin category among its peers.

Ashtead Group Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Ashtead Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ashtead Group will eventually generate negative long term returns. The profitability progress is the general direction of Ashtead Group's change in net profit over the period of time. It can combine multiple indicators of Ashtead Group, 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.
Ashtead Group plc, together with its subsidiaries, engages in the construction, industrial, and general equipment rental business in the United States, the United Kingdom, and Canada. The company was founded in 1947 and is headquartered in London, the United Kingdom. Ashted Group is traded on OTC Exchange in the United States.

Ashtead Profitability Driver Comparison

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

Use Ashtead Group 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 Ashtead Group 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 Ashtead Group will appreciate offsetting losses from the drop in the long position's value.

Ashtead Group Pair Trading

Ashtead Group plc Pair Trading Analysis

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

In addition to having Ashtead Group 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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Run Financials Thematic Idea Now

Financials
Financials Theme
Companies that provide financial services to business or retail customers. The Financials theme has 20 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 Financials Theme or any other thematic opportunities.
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Other Information on Investing in Ashtead Pink Sheet

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