BAB Price To Earning vs. Total Debt
| BABB Stock | USD 0.87 0.04 4.82% |
For BAB profitability analysis, we use financial ratios and fundamental drivers that measure the ability of BAB to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well BAB Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between BAB's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of BAB Inc over time as well as its relative position and ranking within its peers.
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BAB Inc Total Debt vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining BAB's current stock value. Our valuation model uses many indicators to compare BAB value to that of its competitors to determine the firm's financial worth. BAB Inc is number one stock in price to earning category among its peers. It is rated second in total debt category among its peers making up about 11,912 of Total Debt per Price To Earning. Comparative valuation analysis is a catch-all model that can be used if you cannot value BAB by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for BAB's OTC 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.BAB Total Debt vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
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| = | 15.20 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
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| = | 181.07 K |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
BAB Total Debt vs Competition
BAB Inc is rated second in total debt category among its peers. Total debt of Packaged Foods industry is currently estimated at about 2.46 Billion. BAB adds roughly 181,070 in total debt claiming only tiny portion of equities listed under Packaged Foods industry.
BAB Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in BAB, profitability is also one of the essential criteria for including it into their portfolios because, without profit, BAB will eventually generate negative long term returns. The profitability progress is the general direction of BAB's change in net profit over the period of time. It can combine multiple indicators of BAB, 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.
BAB, Inc. franchises and licenses bagel and muffin retail units under the Big Apple Bagels , My Favorite Muffin , and SweetDuet trade names in the United States. BAB, Inc. was incorporated in 2000 and is based in Deerfield, Illinois. BAB INC operates under Packaged Foods classification in the United States and is traded on OTC Exchange. It employs 12 people.
BAB Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on BAB. 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 BAB 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 BAB's important profitability drivers and their relationship over time.
Use BAB 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 BAB 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 BAB will appreciate offsetting losses from the drop in the long position's value.BAB Pair Trading
BAB Inc Pair Trading Analysis
The ability to find closely correlated positions to BAB could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BAB 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 BAB - 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 BAB Inc to buy it.
The correlation of BAB 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 BAB moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if BAB Inc 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 BAB 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 BAB position
In addition to having BAB 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 Macroaxis Picks Thematic Idea Now
Macroaxis Picks
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Other Information on Investing in BAB OTC Stock
To fully project BAB's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of BAB Inc 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 BAB's income statement, its balance sheet, and the statement of cash flows.