CMC Metals Price To Earning vs. Cash And Equivalents
| CMB Stock | CAD 0.02 0.01 33.33% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Pretax Profit Margin | 0.82 | 0.91 |
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For CMC Metals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CMC Metals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CMC Metals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CMC Metals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CMC Metals over time as well as its relative position and ranking within its peers.
CMC |
CMC Metals Cash And Equivalents vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining CMC Metals's current stock value. Our valuation model uses many indicators to compare CMC Metals value to that of its competitors to determine the firm's financial worth. CMC Metals is number one stock in price to earning category among its peers. It is rated below average in cash and equivalents category among its peers creating about 5,145 of Cash And Equivalents per Price To Earning. 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 CMC Metals' earnings, one of the primary drivers of an investment's value.CMC Cash And Equivalents vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
CMC Metals |
| = | 2.00 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
CMC Metals |
| = | 10.29 K |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
CMC Cash And Equivalents Comparison
CMC Metals is currently under evaluation in cash and equivalents category among its peers.
CMC Metals Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in CMC Metals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CMC Metals will eventually generate negative long term returns. The profitability progress is the general direction of CMC Metals' change in net profit over the period of time. It can combine multiple indicators of CMC Metals, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 3.6 M | 3.8 M | |
| Operating Income | -3.2 M | -3.1 M | |
| Net Loss | -3.1 M | -3 M | |
| Income Tax Expense | (4.50) | (4.73) | |
| Income Before Tax | -3.1 M | -3 M | |
| Total Other Income Expense Net | 109.7 K | 115.2 K | |
| Net Loss | -4 M | -4.2 M | |
| Net Loss | -4.9 M | -5.2 M | |
| Net Interest Income | -16.6 K | -17.5 K | |
| Interest Income | 33.6 K | 35.3 K | |
| Change To Netincome | 396.3 K | 294.7 K | |
| Net Loss | (0.02) | (0.02) | |
| Income Quality | 0.97 | 0.74 | |
| Net Income Per E B T | 0.81 | 0.59 |
CMC Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on CMC Metals. 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 CMC Metals 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 CMC Metals' important profitability drivers and their relationship over time.
Use CMC Metals 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 CMC Metals 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 CMC Metals will appreciate offsetting losses from the drop in the long position's value.CMC Metals Pair Trading
CMC Metals Pair Trading Analysis
The ability to find closely correlated positions to CMC Metals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CMC Metals 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 CMC Metals - 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 CMC Metals to buy it.
The correlation of CMC Metals 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 CMC Metals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CMC Metals 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 CMC Metals 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 CMC Metals position
In addition to having CMC Metals 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 Books Thematic Idea Now
Books
Companies involved in publishing of books, newspapers, periodicals and other mass publications. The Books 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 Books Theme or any other thematic opportunities.
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Additional Tools for CMC Stock Analysis
When running CMC Metals' price analysis, check to measure CMC Metals' 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 CMC Metals is operating at the current time. Most of CMC Metals' value examination focuses on studying past and present price action to predict the probability of CMC Metals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CMC Metals' price. Additionally, you may evaluate how the addition of CMC Metals to your portfolios can decrease your overall portfolio volatility.