Centrotec Return On Asset vs. Profit Margin
| CEV Stock | EUR 53.00 0.50 0.95% |
For Centrotec profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Centrotec to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Centrotec SE utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Centrotec's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Centrotec SE over time as well as its relative position and ranking within its peers.
Centrotec |
Centrotec SE Profit Margin vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Centrotec's current stock value. Our valuation model uses many indicators to compare Centrotec value to that of its competitors to determine the firm's financial worth. Centrotec SE is rated below average in return on asset category among its peers. It is rated below average in profit margin category among its peers fabricating about 0.90 of Profit Margin per Return On Asset. The ratio of Return On Asset to Profit Margin for Centrotec SE is roughly 1.11 . 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 Centrotec's earnings, one of the primary drivers of an investment's value.Centrotec Profit Margin vs. Return On Asset
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.
Centrotec |
| = | 0.0419 |
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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Centrotec |
| = | 0.04 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Centrotec Profit Margin Comparison
Centrotec is rated below average in profit margin category among its peers.
Centrotec Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Centrotec. 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 Centrotec 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 Centrotec's important profitability drivers and their relationship over time.
Use Centrotec 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 Centrotec 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 Centrotec will appreciate offsetting losses from the drop in the long position's value.Centrotec Pair Trading
Centrotec SE Pair Trading Analysis
The ability to find closely correlated positions to Centrotec could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Centrotec 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 Centrotec - 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 Centrotec SE to buy it.
The correlation of Centrotec 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 Centrotec moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Centrotec SE 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 Centrotec 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 Centrotec position
In addition to having Centrotec 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 Materials ETFs Thematic Idea Now
Materials ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Materials ETFs theme has 51 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 Materials ETFs Theme or any other thematic opportunities.
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Other Information on Investing in Centrotec Stock
To fully project Centrotec's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Centrotec SE 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 Centrotec's income statement, its balance sheet, and the statement of cash flows.