FirstRand Gross Profit vs. Retained Earnings
| FANDY Stock | USD 45.13 0.93 2.02% |
For FirstRand profitability analysis, we use financial ratios and fundamental drivers that measure the ability of FirstRand to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well FirstRand Ltd ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between FirstRand's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of FirstRand Ltd ADR over time as well as its relative position and ranking within its peers.
FirstRand |
FirstRand ADR Retained Earnings vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining FirstRand's current stock value. Our valuation model uses many indicators to compare FirstRand value to that of its competitors to determine the firm's financial worth. FirstRand Ltd ADR is one of the top stocks in gross profit category among its peers. It also is one of the top stocks in retained earnings category among its peers reporting about 0.84 of Retained Earnings per Gross Profit. The ratio of Gross Profit to Retained Earnings for FirstRand Ltd ADR is roughly 1.19 . Comparative valuation analysis is a catch-all model that can be used if you cannot value FirstRand by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for FirstRand's Pink Sheet. 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.FirstRand Retained Earnings vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
FirstRand |
| = | 106.14 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
FirstRand |
| = | 89.11 B |
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.
FirstRand Retained Earnings Comparison
FirstRand is currently under evaluation in retained earnings category among its peers.
FirstRand Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in FirstRand, profitability is also one of the essential criteria for including it into their portfolios because, without profit, FirstRand will eventually generate negative long term returns. The profitability progress is the general direction of FirstRand's change in net profit over the period of time. It can combine multiple indicators of FirstRand, 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.
FirstRand Limited, together with its subsidiaries, provides banking, transactional, lending, investment, and insurance products and services in South Africa, rest of Africa, the United Kingdom, and internationally. The company was incorporated in 1966 and is based in Sandton, South Africa. Firstrand operates under BanksDiversified classification in the United States and is traded on OTC Exchange.
FirstRand Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on FirstRand. 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 FirstRand 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 FirstRand's important profitability drivers and their relationship over time.
Use FirstRand 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 FirstRand 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 FirstRand will appreciate offsetting losses from the drop in the long position's value.FirstRand Pair Trading
FirstRand Ltd ADR Pair Trading Analysis
The ability to find closely correlated positions to FirstRand could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace FirstRand 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 FirstRand - 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 FirstRand Ltd ADR to buy it.
The correlation of FirstRand 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 FirstRand moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if FirstRand ADR 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 FirstRand 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 FirstRand position
In addition to having FirstRand 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 Money Funds Thematic Idea Now
Money Funds
Funds or Etfs that invest most if their asset in companies from financial sector such as commercial banks, insurance companies, investment funds, and real estate. The Money Funds theme has 32 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 Money Funds Theme or any other thematic opportunities.
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Additional Tools for FirstRand Pink Sheet Analysis
When running FirstRand's price analysis, check to measure FirstRand'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 FirstRand is operating at the current time. Most of FirstRand's value examination focuses on studying past and present price action to predict the probability of FirstRand's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move FirstRand's price. Additionally, you may evaluate how the addition of FirstRand to your portfolios can decrease your overall portfolio volatility.