GrafTech International Price To Sales vs. Return On Equity

EAF Stock  USD 2.00  0.15  6.98%   
Taking into consideration GrafTech International's profitability measurements, GrafTech International may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess GrafTech International's ability to earn profits and add value for shareholders.

GrafTech International Price To Sales Ratio

1.71

At this time, GrafTech International's EV To Sales is most likely to slightly decrease in the upcoming years. The GrafTech International's current Days Of Sales Outstanding is estimated to increase to 73.02, while Sales General And Administrative To Revenue is projected to decrease to 0.02. At this time, GrafTech International's Non Operating Income Net Other is most likely to increase significantly in the upcoming years. The GrafTech International's current Net Income Per E B T is estimated to increase to 0.98, while Accumulated Other Comprehensive Income is projected to decrease to (12 M).
For GrafTech International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of GrafTech International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well GrafTech International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between GrafTech International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of GrafTech International over time as well as its relative position and ranking within its peers.
  
Check out Investing Opportunities.
For more detail on how to invest in GrafTech Stock please use our How to Invest in GrafTech International guide.
Is Electrical Components & Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GrafTech International. If investors know GrafTech will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GrafTech International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.64)
Earnings Share
(1.16)
Revenue Per Share
2.104
Quarterly Revenue Growth
(0.18)
Return On Assets
(0.04)
The market value of GrafTech International is measured differently than its book value, which is the value of GrafTech that is recorded on the company's balance sheet. Investors also form their own opinion of GrafTech International's value that differs from its market value or its book value, called intrinsic value, which is GrafTech International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GrafTech International's market value can be influenced by many factors that don't directly affect GrafTech International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GrafTech International's value and its price as these two are different measures arrived at by different means. Investors typically determine if GrafTech International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GrafTech International'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.

GrafTech International Return On Equity vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining GrafTech International's current stock value. Our valuation model uses many indicators to compare GrafTech International value to that of its competitors to determine the firm's financial worth.
GrafTech International is rated below average in price to sales category among its peers. It is rated below average in return on equity category among its peers . At this time, GrafTech International's Price To Sales Ratio is most likely to slightly decrease in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value GrafTech International by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

GrafTech Return On Equity vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

GrafTech International

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.95 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
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.

GrafTech International

Return On Equity

 = 

Net Income

Total Equity

 = 
-2.14
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.

GrafTech Return On Equity Comparison

GrafTech International is currently under evaluation in return on equity category among its peers.

GrafTech International Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in GrafTech International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, GrafTech International will eventually generate negative long term returns. The profitability progress is the general direction of GrafTech International's change in net profit over the period of time. It can combine multiple indicators of GrafTech International, 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 Income-11.5 M-12 M
Operating Income-47.1 M-44.7 M
Income Before Tax-273.8 M-260.1 M
Total Other Income Expense Net-226.7 M-215.3 M
Net Loss-255.2 M-242.5 M
Income Tax Expense-18.5 M-17.6 M
Net Income Applicable To Common Shares440.4 M223.3 M
Net Income From Continuing Ops12.5 M11.9 M
Non Operating Income Net Other16.7 M17.6 M
Interest IncomeM3.8 M
Net Interest Income-53.6 M-56.2 M
Change To Netincome10.2 M9.7 M
Net Loss(0.99)(0.94)
Income Quality(0.27)(0.25)
Net Income Per E B T 0.93  0.98 

GrafTech Profitability Driver Comparison

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

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

GrafTech International Pair Trading

GrafTech International Pair Trading Analysis

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

In addition to having GrafTech International 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 Diversified Assets Thematic Idea Now

Diversified Assets
Diversified Assets Theme
Pablicly traded close-end funds and other entities backed by different types of diversified investments. The Diversified Assets theme has 39 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 Diversified Assets Theme or any other thematic opportunities.
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When determining whether GrafTech International is a strong investment it is important to analyze GrafTech International'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 GrafTech International's future performance. For an informed investment choice regarding GrafTech Stock, refer to the following important reports:
Check out Investing Opportunities.
For more detail on how to invest in GrafTech Stock please use our How to Invest in GrafTech International guide.
You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
To fully project GrafTech International's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of GrafTech International 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 GrafTech International's income statement, its balance sheet, and the statement of cash flows.
Potential GrafTech International investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although GrafTech International investors may work on each financial statement separately, they are all related. The changes in GrafTech International's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on GrafTech International'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.