FARO Technologies Net Income vs. Operating Margin
| FT1 Stock | EUR 25.20 0.40 1.61% |
For FARO Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of FARO Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well FARO Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between FARO Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of FARO Technologies over time as well as its relative position and ranking within its peers.
FARO |
FARO Technologies Operating Margin vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining FARO Technologies's current stock value. Our valuation model uses many indicators to compare FARO Technologies value to that of its competitors to determine the firm's financial worth. FARO Technologies is one of the top stocks in net income category among its peers. It also is one of the top stocks in operating 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 FARO Technologies' earnings, one of the primary drivers of an investment's value.FARO Operating 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.
FARO Technologies |
| = | (26.76 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.
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.
FARO Technologies |
| = | (0.06) % |
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.
FARO Operating Margin Comparison
FARO Technologies is currently under evaluation in operating margin category among its peers.
FARO Technologies Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in FARO Technologies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, FARO Technologies will eventually generate negative long term returns. The profitability progress is the general direction of FARO Technologies' change in net profit over the period of time. It can combine multiple indicators of FARO Technologies, 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.
FARO Technologies, Inc. designs, develops, manufactures, markets, and supports software driven three-dimensional measurement and imaging solutions. FARO Technologies, Inc. was founded in 1981 and is headquartered in Lake Mary, Florida. FARO TECHS operates under Scientific Technical Instruments classification in Germany and is traded on Frankfurt Stock Exchange. It employs 1862 people.
FARO Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on FARO Technologies. 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 FARO Technologies 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 FARO Technologies' important profitability drivers and their relationship over time.
Use FARO Technologies 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 FARO Technologies 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 FARO Technologies will appreciate offsetting losses from the drop in the long position's value.FARO Technologies Pair Trading
FARO Technologies Pair Trading Analysis
The ability to find closely correlated positions to FARO Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace FARO Technologies 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 FARO Technologies - 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 FARO Technologies to buy it.
The correlation of FARO Technologies 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 FARO Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if FARO Technologies 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 FARO Technologies 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 FARO Technologies position
In addition to having FARO Technologies 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 FARO Stock
When determining whether FARO Technologies offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of FARO Technologies' 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 Faro Technologies Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Faro Technologies Stock:Check out Investing Opportunities. For more detail on how to invest in FARO Stock please use our How to Invest in FARO Technologies guide.You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
To fully project FARO Technologies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of FARO Technologies 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 FARO Technologies' income statement, its balance sheet, and the statement of cash flows.