Cloetta AB Profit Margin vs. Return On Equity

CLA-B Stock  SEK 26.14  0.08  0.31%   
Based on the measurements of profitability obtained from Cloetta AB's financial statements, Cloetta AB 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 Cloetta AB's ability to earn profits and add value for shareholders.
For Cloetta AB profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cloetta AB to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cloetta AB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cloetta AB's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cloetta AB 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 Cloetta AB's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cloetta AB is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cloetta AB'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.

Cloetta AB Return On Equity vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Cloetta AB's current stock value. Our valuation model uses many indicators to compare Cloetta AB value to that of its competitors to determine the firm's financial worth.
Cloetta AB is number one stock in profit margin category among its peers. It also is number one stock in return on equity category among its peers reporting about  1.44  of Return On Equity per Profit 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 Cloetta AB's earnings, one of the primary drivers of an investment's value.

Cloetta Return On Equity vs. Profit Margin

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.

Cloetta AB

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
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.
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.

Cloetta AB

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0578
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.

Cloetta Return On Equity Comparison

Cloetta AB is currently under evaluation in return on equity category among its peers.

Cloetta AB Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Cloetta AB, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cloetta AB will eventually generate negative long term returns. The profitability progress is the general direction of Cloetta AB's change in net profit over the period of time. It can combine multiple indicators of Cloetta AB, 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.
It manufactures and markets chocolate confectionery products, including pralines, chocolate wafers, dragees, plates, and countlines under the Kexchoklad, Polly, Center, Plopp, Tupla, Royal, Sportlunch, and Bridge brands. The company was founded in 1862 and is headquartered in Solna, Sweden. Cloetta AB operates under Confectioners classification in Sweden and is traded on Stockholm Stock Exchange. It employs 2500 people.

Cloetta Profitability Driver Comparison

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

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Companies that are related to providing gambling services across multiple geographical areas by investing, exploring, or producing software, hardware, and related infrastructure for running gambling operations or trading speculative assets. The Gambling theme has 38 constituents at this time.
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Additional Tools for Cloetta Stock Analysis

When running Cloetta AB's price analysis, check to measure Cloetta AB's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cloetta AB is operating at the current time. Most of Cloetta AB's value examination focuses on studying past and present price action to predict the probability of Cloetta AB's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cloetta AB's price. Additionally, you may evaluate how the addition of Cloetta AB to your portfolios can decrease your overall portfolio volatility.