Bachem Holding Operating Margin vs. EBITDA

BANB Stock  CHF 65.70  0.20  0.30%   
Considering the key profitability indicators obtained from Bachem Holding's historical financial statements, Bachem Holding AG may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Bachem Holding's ability to earn profits and add value for shareholders.
For Bachem Holding profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Bachem Holding to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Bachem Holding AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Bachem Holding's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Bachem Holding AG 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 Bachem Holding's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bachem Holding is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bachem Holding'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.

Bachem Holding AG EBITDA vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Bachem Holding's current stock value. Our valuation model uses many indicators to compare Bachem Holding value to that of its competitors to determine the firm's financial worth.
Bachem Holding AG is rated third in operating margin category among its peers. It is number one stock in ebitda category among its peers totaling about  674,132,997  of EBITDA per Operating Margin. 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 Bachem Holding's earnings, one of the primary drivers of an investment's value.

Bachem EBITDA vs. Operating Margin

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.

Bachem Holding

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.24 %
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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Bachem Holding

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
160.17 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Bachem EBITDA Comparison

Bachem Holding is currently under evaluation in ebitda category among its peers.

Bachem Holding Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Bachem Holding, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Bachem Holding will eventually generate negative long term returns. The profitability progress is the general direction of Bachem Holding's change in net profit over the period of time. It can combine multiple indicators of Bachem Holding, 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.
Bachem Holding AG, a technology-based biochemicals company, provides services to the pharmaceutical and biotechnology industries primarily in Switzerland, the United States, Germany, Ireland, the United Kingdom, Austria, Japan, and internationally. Bachem Holding AG was founded in 1971 and is headquartered in Bubendorf, Switzerland. BACHEM N operates under Chemicals classification in Switzerland and is traded on Switzerland Exchange. It employs 1580 people.

Bachem Profitability Driver Comparison

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

Use Bachem Holding 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 Bachem Holding 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 Bachem Holding will appreciate offsetting losses from the drop in the long position's value.

Bachem Holding Pair Trading

Bachem Holding AG Pair Trading Analysis

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

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Additional Tools for Bachem Stock Analysis

When running Bachem Holding's price analysis, check to measure Bachem Holding's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Bachem Holding is operating at the current time. Most of Bachem Holding's value examination focuses on studying past and present price action to predict the probability of Bachem Holding's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Bachem Holding's price. Additionally, you may evaluate how the addition of Bachem Holding to your portfolios can decrease your overall portfolio volatility.