Fairchem Organics Profit Margin vs. Total Debt

FAIRCHEMOR   1,281  43.25  3.50%   
Based on Fairchem Organics' profitability indicators, Fairchem Organics Limited may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Fairchem Organics' ability to earn profits and add value for shareholders.
For Fairchem Organics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fairchem Organics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fairchem Organics Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fairchem Organics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fairchem Organics Limited 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 Fairchem Organics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Fairchem Organics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fairchem Organics' 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.

Fairchem Organics Total Debt vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Fairchem Organics's current stock value. Our valuation model uses many indicators to compare Fairchem Organics value to that of its competitors to determine the firm's financial worth.
Fairchem Organics Limited is rated # 3 in profit margin category among its peers. It is rated below average in total debt category among its peers making up about  949,118,029  of Total Debt per Profit Margin. 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 Fairchem Organics' earnings, one of the primary drivers of an investment's value.

Fairchem Total Debt vs. Profit Margin

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.

Fairchem Organics

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.08 %
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.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.

Fairchem Organics

Total Debt

 = 

Bonds

+

Notes

 = 
73.18 M
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.

Fairchem Total Debt vs Competition

Fairchem Organics Limited is rated below average in total debt category among its peers. Total debt of Materials industry is currently estimated at about 38.84 Billion. Fairchem Organics adds roughly 73.18 Million in total debt claiming only tiny portion of all equities under Materials industry.
Total debt  Revenue  Workforce  Valuation  Capitalization

Fairchem Organics Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Fairchem Organics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fairchem Organics will eventually generate negative long term returns. The profitability progress is the general direction of Fairchem Organics' change in net profit over the period of time. It can combine multiple indicators of Fairchem Organics, 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 Income806.2 M716.6 M
Net Interest Income-42.4 M-44.5 M
Interest Income423 K717 K
Operating Income1.3 B897.6 M
Net Income From Continuing Ops405 M508.1 M
Income Before Tax546 M670.7 M
Total Other Income Expense Net-773.8 M-735.1 M
Net Income Applicable To Common Shares500.3 M518.6 M
Net Income405 M465.2 M
Income Tax Expense141 M162.6 M
Change To Netincome85.8 M57.9 M

Fairchem Profitability Driver Comparison

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

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

Fairchem Organics Pair Trading

Fairchem Organics Limited Pair Trading Analysis

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

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Other Information on Investing in Fairchem Stock

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