Centrica PLC Operating Margin vs. Book Value Per Share
| CNA Stock | 124.95 0.95 0.75% |
For Centrica PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Centrica PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Centrica PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Centrica PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Centrica PLC over time as well as its relative position and ranking within its peers.
Centrica |
Centrica PLC Book Value Per Share vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Centrica PLC's current stock value. Our valuation model uses many indicators to compare Centrica PLC value to that of its competitors to determine the firm's financial worth. Centrica PLC is number one stock in operating margin category among its peers. It also is number one stock in book value per share category among its peers creating about 2.73 of Book Value Per Share 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 Centrica PLC's earnings, one of the primary drivers of an investment's value.Centrica Book Value Per Share 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.
Centrica PLC |
| = | 0.34 % |
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.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
Centrica PLC |
| = | 0.93 X |
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Centrica Book Value Per Share Comparison
Centrica PLC is currently under evaluation in book value per share category among its peers.
Centrica PLC Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Centrica PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Centrica PLC will eventually generate negative long term returns. The profitability progress is the general direction of Centrica PLC's change in net profit over the period of time. It can combine multiple indicators of Centrica PLC, 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 | -1.5 B | -1.6 B | |
| Operating Income | 6.5 B | 6.8 B | |
| Income Before Tax | 6.5 B | 6.8 B | |
| Total Other Income Expense Net | -39 M | -41 M | |
| Net Income | 3.9 B | 4.1 B | |
| Income Tax Expense | 2.4 B | 2.6 B | |
| Net Loss | -703.8 M | -668.6 M | |
| Net Income From Continuing Ops | 4 B | 4.2 B | |
| Net Interest Income | -37 M | -38.9 M | |
| Interest Income | 269 M | 282.4 M | |
| Change To Netincome | 2.4 B | 2.5 B |
Centrica Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Centrica PLC. 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 Centrica PLC 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 Centrica PLC's important profitability drivers and their relationship over time.
Use Centrica PLC 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 Centrica PLC 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 Centrica PLC will appreciate offsetting losses from the drop in the long position's value.Centrica PLC Pair Trading
Centrica PLC Pair Trading Analysis
The ability to find closely correlated positions to Centrica PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Centrica PLC 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 Centrica PLC - 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 Centrica PLC to buy it.
The correlation of Centrica PLC 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 Centrica PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Centrica PLC 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 Centrica PLC 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 Centrica PLC position
In addition to having Centrica PLC 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 Baby Boomer Prospects Thematic Idea Now
Baby Boomer Prospects
Equities with large market capitalization that account for significant contribution to overall economic growth especially within dividend-paying instruments and stocks from healthcare and financial sectors. The Baby Boomer Prospects theme has 99 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 Baby Boomer Prospects Theme or any other thematic opportunities.
| View All Next | Launch |
Other Information on Investing in Centrica Stock
To fully project Centrica PLC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Centrica PLC 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 Centrica PLC's income statement, its balance sheet, and the statement of cash flows.