Clarkson Operating Margin vs. Price To Book

CKN Stock   4,010  30.00  0.74%   
Considering Clarkson's profitability and operating efficiency indicators, Clarkson may not be well positioned to generate adequate gross income at this time. It has a very high risk of underperforming in January. Profitability indicators assess Clarkson's ability to earn profits and add value for shareholders.
For Clarkson profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Clarkson to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Clarkson utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Clarkson's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Clarkson 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 Clarkson's value and its price as these two are different measures arrived at by different means. Investors typically determine if Clarkson is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Clarkson'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.

Clarkson Price To Book vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Clarkson's current stock value. Our valuation model uses many indicators to compare Clarkson value to that of its competitors to determine the firm's financial worth.
Clarkson is rated second in operating margin category among its peers. It is number one stock in price to book category among its peers fabricating about  18.28  of Price To Book 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 Clarkson's earnings, one of the primary drivers of an investment's value.

Clarkson Price To Book 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.

Clarkson

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.15 %
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.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Clarkson

P/B

 = 

MV Per Share

BV Per Share

 = 
2.67 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

Clarkson Price To Book Comparison

Clarkson is currently under evaluation in price to book category among its peers.

Clarkson Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Clarkson, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Clarkson will eventually generate negative long term returns. The profitability progress is the general direction of Clarkson's change in net profit over the period of time. It can combine multiple indicators of Clarkson, 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 Income66.5 M69.8 M
Operating Income99.8 M104.8 M
Income Before Tax108.8 M114.2 M
Total Other Income Expense NetM9.4 M
Net Income83.8 M88 M
Income Tax Expense23 M24.1 M
Net Income Applicable To Common Shares86.9 M91.3 M
Net Income From Continuing Ops91.5 M96.1 M
Interest Income1.4 MM
Net Interest Income-90 K-94.5 K
Change To Netincome8.1 M15.3 M

Clarkson Profitability Driver Comparison

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

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

Clarkson Pair Trading

Clarkson Pair Trading Analysis

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

In addition to having Clarkson 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 Wireless Thematic Idea Now

Wireless
Wireless Theme
Companies providing wireless technology and communication services. The Wireless theme has 43 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 Wireless Theme or any other thematic opportunities.
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Other Information on Investing in Clarkson Stock

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