Cheniere Energy Return On Asset vs. Return On Equity

CHQ1 Stock  EUR 199.60  2.70  1.37%   
Based on the key profitability measurements obtained from Cheniere Energy's financial statements, Cheniere Energy 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 Cheniere Energy's ability to earn profits and add value for shareholders.
For Cheniere Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cheniere Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cheniere Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cheniere Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cheniere Energy over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in Cheniere Stock please use our How to Invest in Cheniere Energy guide.
Please note, there is a significant difference between Cheniere Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cheniere Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cheniere Energy'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.

Cheniere Energy Return On Equity vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Cheniere Energy's current stock value. Our valuation model uses many indicators to compare Cheniere Energy value to that of its competitors to determine the firm's financial worth.
Cheniere Energy is number one stock in return on asset category among its peers. It is rated fifth in return on equity category among its peers . 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 Cheniere Energy's earnings, one of the primary drivers of an investment's value.

Cheniere Return On Equity 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.

Cheniere Energy

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0699
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.
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.

Cheniere Energy

Return On Equity

 = 

Net Income

Total Equity

 = 
-3.22
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.

Cheniere Return On Equity Comparison

Cheniere Energy is currently under evaluation in return on equity category among its peers.

Cheniere Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Cheniere Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cheniere Energy will eventually generate negative long term returns. The profitability progress is the general direction of Cheniere Energy's change in net profit over the period of time. It can combine multiple indicators of Cheniere Energy, 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.
Cheniere Energy, Inc., an energy company, engages in the liquefied natural gas related businesses in the United States. Cheniere Energy, Inc. was founded in 1983 and is headquartered in Houston, Texas. CHENIERE ENERGY operates under Oil Gas Midstream classification in Germany and is traded on Frankfurt Stock Exchange. It employs 1372 people.

Cheniere Profitability Driver Comparison

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

Use Cheniere Energy 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 Cheniere Energy 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 Cheniere Energy will appreciate offsetting losses from the drop in the long position's value.

Cheniere Energy Pair Trading

Cheniere Energy Pair Trading Analysis

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

In addition to having Cheniere Energy 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 Marketing Thematic Idea Now

Marketing
Marketing Theme
Companies providing marketing and public relation (PR) services as well as news and media distribution. The Marketing theme has 48 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 Marketing Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Cheniere Stock

When determining whether Cheniere Energy is a strong investment it is important to analyze Cheniere Energy'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 Cheniere Energy's future performance. For an informed investment choice regarding Cheniere Stock, refer to the following important reports:
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For more detail on how to invest in Cheniere Stock please use our How to Invest in Cheniere Energy guide.
You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
To fully project Cheniere Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cheniere Energy 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 Cheniere Energy's income statement, its balance sheet, and the statement of cash flows.
Potential Cheniere Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Cheniere Energy investors may work on each financial statement separately, they are all related. The changes in Cheniere Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Cheniere Energy'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.