American States Gross Profit vs. Price To Earning
| FDK Stock | EUR 75.45 0.75 0.98% |
For American States profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American States to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American States Water utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American States's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American States Water over time as well as its relative position and ranking within its peers.
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American States Water Price To Earning vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining American States's current stock value. Our valuation model uses many indicators to compare American States value to that of its competitors to determine the firm's financial worth. American States Water is rated below average in gross profit category among its peers. It is rated # 3 in price to earning category among its peers . The ratio of Gross Profit to Price To Earning for American States Water is about 7,136,519 . 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 American States' earnings, one of the primary drivers of an investment's value.American Price To Earning 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.
American States |
| = | 274.76 M |
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.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
American States |
| = | 38.50 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
American Price To Earning Comparison
American States is rated # 2 in price to earning category among its peers.
American States Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in American States, profitability is also one of the essential criteria for including it into their portfolios because, without profit, American States will eventually generate negative long term returns. The profitability progress is the general direction of American States' change in net profit over the period of time. It can combine multiple indicators of American States, 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.
American States Water Company, through its subsidiaries, provides water and electric services to residential, industrial, and other customers in the United States. American States Water Company was founded in 1929 and is based in San Dimas, California. AMERICAN STAT operates under Utilities - Regulated Water classification in Germany and is traded on Frankfurt Stock Exchange. It employs 817 people.
American Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on American States. 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 American States 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 American States' important profitability drivers and their relationship over time.
Use American States 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 American States 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 American States will appreciate offsetting losses from the drop in the long position's value.American States Pair Trading
American States Water Pair Trading Analysis
The ability to find closely correlated positions to American States could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American States 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 American States - 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 American States Water to buy it.
The correlation of American States 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 American States moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American States Water 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 American States 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 American States position
In addition to having American States 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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Additional Information and Resources on Investing in American Stock
When determining whether American States Water is a strong investment it is important to analyze American States' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact American States' future performance. For an informed investment choice regarding American Stock, refer to the following important reports:Check out Investing Opportunities. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project American States' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of American States Water 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 American States' income statement, its balance sheet, and the statement of cash flows.