EAM Solar Return On Equity vs. Return On Asset

EAM Stock  NOK 0.15  0.01  6.25%   
Considering EAM Solar's profitability and operating efficiency indicators, EAM Solar ASA 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 EAM Solar's ability to earn profits and add value for shareholders.
For EAM Solar profitability analysis, we use financial ratios and fundamental drivers that measure the ability of EAM Solar to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well EAM Solar ASA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between EAM Solar's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of EAM Solar ASA 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 EAM Solar's value and its price as these two are different measures arrived at by different means. Investors typically determine if EAM Solar is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, EAM Solar'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.

EAM Solar ASA Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining EAM Solar's current stock value. Our valuation model uses many indicators to compare EAM Solar value to that of its competitors to determine the firm's financial worth.
EAM Solar ASA is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in return on asset category among its peers . 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 EAM Solar's earnings, one of the primary drivers of an investment's value.

EAM Return On Asset vs. Return On Equity

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.

EAM Solar

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.27
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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

EAM Solar

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0223
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

EAM Return On Asset Comparison

EAM Solar is currently under evaluation in return on asset category among its peers.

EAM Solar Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in EAM Solar, profitability is also one of the essential criteria for including it into their portfolios because, without profit, EAM Solar will eventually generate negative long term returns. The profitability progress is the general direction of EAM Solar's change in net profit over the period of time. It can combine multiple indicators of EAM Solar, 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.
EAM Solar ASA acquires, owns, and operates solar power plants in Europe. The company was founded in 2011 and is based in Oslo, Norway. EAM SOLAR operates under Electricity Distribution And Generation classification in Norway and is traded on Oslo Stock Exchange.

EAM Profitability Driver Comparison

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

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

EAM Solar Pair Trading

EAM Solar ASA Pair Trading Analysis

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

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Other Information on Investing in EAM Stock

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