Esso SAF Price To Earning vs. Return On Asset
| ES Stock | EUR 99.90 0.50 0.50% |
For Esso SAF profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Esso SAF to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Esso SAF utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Esso SAF's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Esso SAF over time as well as its relative position and ranking within its peers.
Esso |
Esso SAF Return On Asset vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Esso SAF's current stock value. Our valuation model uses many indicators to compare Esso SAF value to that of its competitors to determine the firm's financial worth. Esso SAF is one of the top stocks in price to earning category among its peers. It also is one of the top stocks in return on asset category among its peers reporting about 0.15 of Return On Asset per Price To Earning. The ratio of Price To Earning to Return On Asset for Esso SAF is roughly 6.86 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Esso SAF by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Esso SAF's 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.Esso Return On Asset vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Esso SAF |
| = | 1.52 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.
Esso SAF |
| = | 0.22 |
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.
Esso Return On Asset Comparison
Esso SAF is currently under evaluation in return on asset category among its peers.
Esso SAF Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Esso SAF, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Esso SAF will eventually generate negative long term returns. The profitability progress is the general direction of Esso SAF's change in net profit over the period of time. It can combine multiple indicators of Esso SAF, 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.
Esso S.A.F. refines, distributes, and markets refined petroleum products in France and internationally. Esso S.A.F. is a subsidiary of ExxonMobil France Holding S.A.S. ESSO operates under Petroleum Refiners And Distributors classification in France and is traded on Paris Stock Exchange. It employs 1746 people.
Esso Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Esso SAF. 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 Esso SAF 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 Esso SAF's important profitability drivers and their relationship over time.
Use Esso SAF 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 Esso SAF 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 Esso SAF will appreciate offsetting losses from the drop in the long position's value.Esso SAF Pair Trading
Esso SAF Pair Trading Analysis
The ability to find closely correlated positions to Esso SAF could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Esso SAF 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 Esso SAF - 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 Esso SAF to buy it.
The correlation of Esso SAF 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 Esso SAF moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Esso SAF 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 Esso SAF 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 Esso SAF position
In addition to having Esso SAF 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?
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Other Information on Investing in Esso Stock
To fully project Esso SAF's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Esso SAF 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 Esso SAF's income statement, its balance sheet, and the statement of cash flows.