Eneva SA Return On Equity vs. Profit Margin
| ENEV3 Stock | BRL 11.46 0.02 0.17% |
For Eneva SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Eneva SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Eneva SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Eneva SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Eneva SA over time as well as its relative position and ranking within its peers.
Eneva |
Eneva SA Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Eneva SA's current stock value. Our valuation model uses many indicators to compare Eneva SA value to that of its competitors to determine the firm's financial worth. Eneva SA is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in profit margin category among its peers fabricating about 2.04 of Profit Margin per Return On Equity. 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 Eneva SA's earnings, one of the primary drivers of an investment's value.Eneva Profit Margin 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.
Eneva SA |
| = | 0.0943 |
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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Eneva SA |
| = | 0.19 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Eneva Profit Margin Comparison
Eneva SA is currently under evaluation in profit margin category among its peers.
Eneva SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Eneva SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Eneva SA will eventually generate negative long term returns. The profitability progress is the general direction of Eneva SA's change in net profit over the period of time. It can combine multiple indicators of Eneva SA, 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.
Eneva S.A., together with its subsidiaries, operates as an integrated power generation company in Brazil. Eneva S.A. was founded in 2001 and is headquartered in Rio de Janeiro, Brazil. ENEVA ON operates under UtilitiesDiversified classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 1280 people.
Eneva Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Eneva SA. 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 Eneva SA 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 Eneva SA's important profitability drivers and their relationship over time.
Use Eneva SA 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 Eneva SA 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 Eneva SA will appreciate offsetting losses from the drop in the long position's value.Eneva SA Pair Trading
Eneva SA Pair Trading Analysis
The ability to find closely correlated positions to Eneva SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Eneva SA 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 Eneva SA - 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 Eneva SA to buy it.
The correlation of Eneva SA 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 Eneva SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Eneva SA 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 Eneva SA 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 Eneva SA position
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Additional Tools for Eneva Stock Analysis
When running Eneva SA's price analysis, check to measure Eneva SA's 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 Eneva SA is operating at the current time. Most of Eneva SA's value examination focuses on studying past and present price action to predict the probability of Eneva SA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Eneva SA's price. Additionally, you may evaluate how the addition of Eneva SA to your portfolios can decrease your overall portfolio volatility.