Befesa SA Return On Equity vs. Return On Asset

BFSA Stock   22.00  0.86  4.07%   
Based on the key profitability measurements obtained from Befesa SA's financial statements, Befesa SA 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 Befesa SA's ability to earn profits and add value for shareholders.
For Befesa SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Befesa SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Befesa SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Befesa SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Befesa SA 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 Befesa SA's value and its price as these two are different measures arrived at by different means. Investors typically determine if Befesa SA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Befesa SA'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.

Befesa SA Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Befesa SA's current stock value. Our valuation model uses many indicators to compare Befesa SA value to that of its competitors to determine the firm's financial worth.
Befesa SA is number one stock in return on equity category among its peers. It also is number one stock in return on asset category among its peers reporting about  0.31  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Befesa SA is roughly  3.25 . 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 Befesa SA's earnings, one of the primary drivers of an investment's value.

Befesa Return On Asset 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.

Befesa SA

Return On Equity

 = 

Net Income

Total Equity

 = 
0.17
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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Befesa SA

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0528
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Befesa Return On Asset Comparison

Befesa SA is currently under evaluation in return on asset category among its peers.

Befesa Profitability Driver Comparison

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

Use Befesa 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 Befesa 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 Befesa SA will appreciate offsetting losses from the drop in the long position's value.

Befesa SA Pair Trading

Befesa SA Pair Trading Analysis

The ability to find closely correlated positions to Befesa 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 Befesa 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 Befesa 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 Befesa SA to buy it.
The correlation of Befesa 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 Befesa SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Befesa 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 Befesa 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Befesa SA position

In addition to having Befesa 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.

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Run Exotic Funds Thematic Idea Now

Exotic Funds
Exotic Funds Theme
Funds or Etfs with high minimum investment requirement that manage portfolios of alternative investments such as hedge funds, options, futures, real estate or commodities. The Exotic Funds theme has 44 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 Exotic Funds Theme or any other thematic opportunities.
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Other Information on Investing in Befesa Stock

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