Esquire Financial Operating Margin vs. Return On Asset

ESQ Stock  USD 78.90  0.98  1.26%   
Taking into consideration Esquire Financial's profitability measurements, Esquire Financial Holdings is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Esquire Financial's ability to earn profits and add value for shareholders.

Esquire Financial Operating Profit Margin

0.68

At this time, Esquire Financial's Price To Sales Ratio is relatively stable compared to the past year. As of 12/04/2024, Sales General And Administrative To Revenue is likely to grow to 0.39, while Operating Cash Flow Sales Ratio is likely to drop 0.23. At this time, Esquire Financial's Interest Income is relatively stable compared to the past year. As of 12/04/2024, Net Income Per Share is likely to grow to 5.58, while Change To Netincome is likely to drop slightly above 4.5 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.770.9667
Significantly Down
Slightly volatile
Net Profit Margin0.470.4463
Notably Up
Slightly volatile
Operating Profit Margin0.680.6501
Sufficiently Up
Slightly volatile
Pretax Profit Margin0.640.6082
Sufficiently Up
Slightly volatile
Return On Assets0.02660.0254
Sufficiently Up
Slightly volatile
Return On Equity0.220.2065
Notably Up
Slightly volatile
For Esquire Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Esquire Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Esquire Financial Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Esquire Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Esquire Financial Holdings over time as well as its relative position and ranking within its peers.
  
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Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Esquire Financial. If investors know Esquire will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Esquire Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.145
Dividend Share
0.575
Earnings Share
4.95
Revenue Per Share
14.931
Quarterly Revenue Growth
0.143
The market value of Esquire Financial is measured differently than its book value, which is the value of Esquire that is recorded on the company's balance sheet. Investors also form their own opinion of Esquire Financial's value that differs from its market value or its book value, called intrinsic value, which is Esquire Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Esquire Financial's market value can be influenced by many factors that don't directly affect Esquire Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Esquire Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Esquire Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Esquire Financial'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.

Esquire Financial Return On Asset vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Esquire Financial's current stock value. Our valuation model uses many indicators to compare Esquire Financial value to that of its competitors to determine the firm's financial worth.
Esquire Financial Holdings is rated # 3 in operating margin category among its peers. It is rated # 2 in return on asset category among its peers reporting about  0.05  of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Esquire Financial Holdings is roughly  19.66 . At this time, Esquire Financial's Operating Profit Margin is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Esquire Financial by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Esquire Return On Asset vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Esquire Financial

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.50 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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.

Esquire Financial

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0256
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.

Esquire Return On Asset Comparison

Esquire Financial is currently under evaluation in return on asset category among its peers.

Esquire Financial Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Esquire Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Esquire Financial will eventually generate negative long term returns. The profitability progress is the general direction of Esquire Financial's change in net profit over the period of time. It can combine multiple indicators of Esquire Financial, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-13.2 M-12.6 M
Operating Income55.9 M58.7 M
Net Income From Continuing Ops40.2 M42.3 M
Income Before Tax55.9 M58.7 M
Total Other Income Expense Net55.9 M58.7 M
Net Income Applicable To Common Shares32.8 M34.4 M
Net Income41 M43.1 M
Income Tax Expense14.9 M15.6 M
Net Interest Income79.4 M40.2 M
Interest Income85.4 M89.6 M
Change To Netincome5.2 M4.5 M
Net Income Per Share 5.31  5.58 
Income Quality 1.03  0.98 
Net Income Per E B T 0.73  0.50 

Esquire Profitability Driver Comparison

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

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

Esquire Financial Pair Trading

Esquire Financial Holdings Pair Trading Analysis

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

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Target Outcome ETFs Theme
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Additional Tools for Esquire Stock Analysis

When running Esquire Financial's price analysis, check to measure Esquire Financial'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 Esquire Financial is operating at the current time. Most of Esquire Financial's value examination focuses on studying past and present price action to predict the probability of Esquire Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Esquire Financial's price. Additionally, you may evaluate how the addition of Esquire Financial to your portfolios can decrease your overall portfolio volatility.