Enbridge Pref Return On Equity vs. Price To Sales

ENB-PV Preferred Stock  USD 23.74  0.09  0.38%   
Considering the key profitability indicators obtained from Enbridge Pref's historical financial statements, Enbridge Pref 1 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 Enbridge Pref's ability to earn profits and add value for shareholders.
For Enbridge Pref profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Enbridge Pref to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Enbridge Pref 1 utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Enbridge Pref's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Enbridge Pref 1 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 Enbridge Pref's value and its price as these two are different measures arrived at by different means. Investors typically determine if Enbridge Pref is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Enbridge Pref'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.

Enbridge Pref 1 Price To Sales vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Enbridge Pref's current stock value. Our valuation model uses many indicators to compare Enbridge Pref value to that of its competitors to determine the firm's financial worth.
Enbridge Pref 1 is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in price to sales category among its peers fabricating about  22.98  of Price To Sales per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Enbridge Pref by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Enbridge Pref's Preferred Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Enbridge Price To Sales 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.

Enbridge Pref

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0644
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.
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.

Enbridge Pref

P/S

 = 

MV Per Share

Revenue Per Share

 = 
1.48 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.

Enbridge Price To Sales Comparison

Enbridge Pref is currently under evaluation in price to sales category among its peers.

Enbridge Profitability Driver Comparison

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

Use Enbridge Pref 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 Enbridge Pref 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 Enbridge Pref will appreciate offsetting losses from the drop in the long position's value.

Enbridge Pref Pair Trading

Enbridge Pref 1 Pair Trading Analysis

The ability to find closely correlated positions to Enbridge Pref could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Enbridge Pref 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 Enbridge Pref - 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 Enbridge Pref 1 to buy it.
The correlation of Enbridge Pref 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 Enbridge Pref moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Enbridge Pref 1 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 Enbridge Pref 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 Enbridge Pref position

In addition to having Enbridge Pref 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 Chemicals Thematic Idea Now

Chemicals
Chemicals Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Chemicals theme has 61 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 Chemicals Theme or any other thematic opportunities.
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Other Information on Investing in Enbridge Preferred Stock

To fully project Enbridge Pref's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Enbridge Pref 1 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 Enbridge Pref's income statement, its balance sheet, and the statement of cash flows.
Potential Enbridge Pref investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Enbridge Pref investors may work on each financial statement separately, they are all related. The changes in Enbridge Pref's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Enbridge Pref'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.