EssilorLuxottica Shares Owned By Insiders vs. Return On Equity

ESL Stock  EUR 228.80  2.50  1.08%   
Based on the key profitability measurements obtained from EssilorLuxottica's financial statements, EssilorLuxottica Socit anonyme 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 EssilorLuxottica's ability to earn profits and add value for shareholders.
For EssilorLuxottica profitability analysis, we use financial ratios and fundamental drivers that measure the ability of EssilorLuxottica to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well EssilorLuxottica Socit anonyme utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between EssilorLuxottica's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of EssilorLuxottica Socit anonyme 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 EssilorLuxottica's value and its price as these two are different measures arrived at by different means. Investors typically determine if EssilorLuxottica is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, EssilorLuxottica'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.

EssilorLuxottica Socit Return On Equity vs. Shares Owned By Insiders Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining EssilorLuxottica's current stock value. Our valuation model uses many indicators to compare EssilorLuxottica value to that of its competitors to determine the firm's financial worth.
EssilorLuxottica Socit anonyme is rated # 3 in shares owned by insiders category among its peers. It is rated below average in return on equity category among its peers . The ratio of Shares Owned By Insiders to Return On Equity for EssilorLuxottica Socit anonyme is about  588.21 . 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 EssilorLuxottica's earnings, one of the primary drivers of an investment's value.

EssilorLuxottica Return On Equity vs. Shares Owned By Insiders

Shares Owned by Insiders show the percentage of outstanding shares owned by insiders (such as principal officers or members of the board of directors) or private individuals and entities with over 5% of the total shares outstanding. Company executives or private individuals with access to insider information share information about a firm's operations that is not available to the general public.

EssilorLuxottica

Insiders Shares

 = 

Executives Shares

+

Employees

 = 
36.17 %
Although the research on effects of insider trading on prices and volatility is still relatively inconclusive, and investors are advised to pay close attention to the distribution of equities among company's stakeholders to avoid many problems associated with the disclosure of price-sensitive information.
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.

EssilorLuxottica

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0615
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.

EssilorLuxottica Return On Equity Comparison

EssilorLuxottica is rated below average in return on equity category among its peers.

EssilorLuxottica Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in EssilorLuxottica, profitability is also one of the essential criteria for including it into their portfolios because, without profit, EssilorLuxottica will eventually generate negative long term returns. The profitability progress is the general direction of EssilorLuxottica's change in net profit over the period of time. It can combine multiple indicators of EssilorLuxottica, 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.
EssilorLuxottica Socit anonyme designs, manufactures, and distributes ophthalmic lenses, frames, and sunglasses North America, Europe, Asia, Oceania, Africa, Latin America, and internationally. The company was founded in 1849 and is headquartered in Paris, France. ESSILORLUXO INH is traded on Frankfurt Stock Exchange in Germany.

EssilorLuxottica Profitability Driver Comparison

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

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

EssilorLuxottica Pair Trading

EssilorLuxottica Socit anonyme Pair Trading Analysis

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

In addition to having EssilorLuxottica 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 Gold and Gold Mining Thematic Idea Now

Gold and Gold Mining
Gold and Gold Mining Theme
Large and mid-size companies, ETFs and funds that are either investing, exploring or producing, gold or indirectly involved in trading or making gold products. The Gold and Gold Mining theme has 100 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 Gold and Gold Mining Theme or any other thematic opportunities.
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Other Information on Investing in EssilorLuxottica Stock

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