CDT Environmental Operating Margin vs. Return On Equity

CDTG Stock   3.30  0.07  2.17%   
Taking into consideration CDT Environmental's profitability measurements, CDT Environmental's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess CDT Environmental's ability to earn profits and add value for shareholders.

CDT Environmental Operating Profit Margin

0.26

At this time, CDT Environmental's Days Sales Outstanding is most likely to increase significantly in the upcoming years. The CDT Environmental's current Days Of Sales Outstanding is estimated to increase to 1,292, while Price To Sales Ratio is projected to decrease to 0.84. At this time, CDT Environmental's Operating Income is most likely to increase significantly in the upcoming years. The CDT Environmental's current Income Before Tax is estimated to increase to about 8.8 M, while Net Income From Continuing Ops is projected to decrease to roughly 4.8 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.410.3328
Fairly Up
Very volatile
For CDT Environmental profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CDT Environmental to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CDT Environmental Technology utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CDT Environmental's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CDT Environmental Technology over time as well as its relative position and ranking within its peers.
  
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Is Environmental & Facilities Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CDT Environmental. If investors know CDT will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CDT Environmental listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.09
Earnings Share
0.69
Revenue Per Share
3.718
Quarterly Revenue Growth
0.173
Return On Assets
0.085
The market value of CDT Environmental is measured differently than its book value, which is the value of CDT that is recorded on the company's balance sheet. Investors also form their own opinion of CDT Environmental's value that differs from its market value or its book value, called intrinsic value, which is CDT Environmental's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CDT Environmental's market value can be influenced by many factors that don't directly affect CDT Environmental's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CDT Environmental's value and its price as these two are different measures arrived at by different means. Investors typically determine if CDT Environmental is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CDT Environmental'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.

CDT Environmental Return On Equity vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining CDT Environmental's current stock value. Our valuation model uses many indicators to compare CDT Environmental value to that of its competitors to determine the firm's financial worth.
CDT Environmental Technology is number one stock in operating margin category among its peers. It also is number one stock in return on equity category among its peers reporting about  0.73  of Return On Equity per Operating Margin. The ratio of Operating Margin to Return On Equity for CDT Environmental Technology is roughly  1.37 . At this time, CDT Environmental's Operating Profit Margin is most likely to increase slightly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value CDT Environmental by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

CDT Return On Equity 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.

CDT Environmental

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.33 %
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.
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.

CDT Environmental

Return On Equity

 = 

Net Income

Total Equity

 = 
0.24
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.

CDT Return On Equity Comparison

CDT Environmental is currently under evaluation in return on equity category among its peers.

CDT Environmental Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in CDT Environmental, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CDT Environmental will eventually generate negative long term returns. The profitability progress is the general direction of CDT Environmental's change in net profit over the period of time. It can combine multiple indicators of CDT Environmental, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income1.2 M1.2 M
Net Interest Income-90.6 K-95.2 K
Interest Income15.5 K23.9 K
Operating Income8.6 MM
Net Income From Continuing OpsM4.8 M
Income Before Tax8.4 M8.8 M
Total Other Income Expense Net-183.6 K-192.7 K
Net IncomeM7.4 M
Income Tax Expense1.4 M1.5 M
Net Income Per Share 0.81  0.85 
Income Quality(0.45)(0.47)
Net Income Per E B T 0.88  0.71 

CDT Profitability Driver Comparison

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

Use CDT Environmental 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 CDT Environmental 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 CDT Environmental will appreciate offsetting losses from the drop in the long position's value.

CDT Environmental Pair Trading

CDT Environmental Technology Pair Trading Analysis

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

In addition to having CDT Environmental 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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When determining whether CDT Environmental is a strong investment it is important to analyze CDT Environmental's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CDT Environmental's future performance. For an informed investment choice regarding CDT Stock, refer to the following important reports:
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You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
To fully project CDT Environmental's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CDT Environmental 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 CDT Environmental's income statement, its balance sheet, and the statement of cash flows.
Potential CDT Environmental investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although CDT Environmental investors may work on each financial statement separately, they are all related. The changes in CDT Environmental's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on CDT Environmental'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.