Century Aluminum Net Income vs. Profit Margin
| EY3 Stock | EUR 17.20 0.54 3.04% |
For Century Aluminum profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Century Aluminum to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Century Aluminum utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Century Aluminum's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Century Aluminum over time as well as its relative position and ranking within its peers.
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Century Aluminum Profit Margin vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Century Aluminum's current stock value. Our valuation model uses many indicators to compare Century Aluminum value to that of its competitors to determine the firm's financial worth. Century Aluminum is rated below average in net income category among its peers. It also is rated below average in profit margin category among its peers . 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 Century Aluminum's earnings, one of the primary drivers of an investment's value.Century Profit Margin vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Century Aluminum |
| = | (14.1 M) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
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| = | (0.01) % |
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.
Century Profit Margin Comparison
Century Aluminum is rated # 5 in profit margin category among its peers.
Century Aluminum Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Century Aluminum, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Century Aluminum will eventually generate negative long term returns. The profitability progress is the general direction of Century Aluminum's change in net profit over the period of time. It can combine multiple indicators of Century Aluminum, 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.
Century Aluminum Company, together with its subsidiaries, produces standard-grade and value-added primary aluminum products in the United States and Iceland. The company was founded in 1995 and is headquartered in Chicago, Illinois. CENTURY ALUM operates under Aluminum classification in Germany and is traded on Frankfurt Stock Exchange. It employs 2069 people.
Century Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Century Aluminum. 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 Century Aluminum 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 Century Aluminum's important profitability drivers and their relationship over time.
Use Century Aluminum 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 Century Aluminum 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 Century Aluminum will appreciate offsetting losses from the drop in the long position's value.Century Aluminum Pair Trading
Century Aluminum Pair Trading Analysis
The ability to find closely correlated positions to Century Aluminum could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Century Aluminum 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 Century Aluminum - 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 Century Aluminum to buy it.
The correlation of Century Aluminum 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 Century Aluminum moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Century Aluminum 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 Century Aluminum 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 Century Aluminum position
In addition to having Century Aluminum 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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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 Broad Market ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Century Stock
When determining whether Century Aluminum offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Century Aluminum's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Century Aluminum Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Century Aluminum Stock:Check out Investing Opportunities. For more detail on how to invest in Century Stock please use our How to Invest in Century Aluminum guide.You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
To fully project Century Aluminum's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Century Aluminum 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 Century Aluminum's income statement, its balance sheet, and the statement of cash flows.