Global Blue Net Income vs. Return On Equity

GB Stock  USD 5.94  0.27  4.76%   
Based on the measurements of profitability obtained from Global Blue's financial statements, Global Blue Group is performing exceptionally good at the present time. It has a great chance to showcase excellent profitability results in January. Profitability indicators assess Global Blue's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2018-03-31
Previous Quarter
23.8 M
Current Value
14.6 M
Quarterly Volatility
55.6 M
 
Covid
At present, Global Blue's Sales General And Administrative To Revenue is projected to increase slightly based on the last few years of reporting. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.30, whereas Price To Sales Ratio is forecasted to decline to 2.61. At present, Global Blue's Income Tax Expense is projected to decrease significantly based on the last few years of reporting. The current year's Interest Income is expected to grow to about 5.2 M, whereas Accumulated Other Comprehensive Income is projected to grow to (924 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.80.7353
Significantly Up
Very volatile
Return On Equity0.190.2
Notably Down
Pretty Stable
For Global Blue profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Global Blue to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Global Blue Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Global Blue's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Global Blue Group over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Global Blue. If investors know Global will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Global Blue listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.766
Earnings Share
0.13
Revenue Per Share
1.894
Quarterly Revenue Growth
0.246
Return On Assets
0.0604
The market value of Global Blue Group is measured differently than its book value, which is the value of Global that is recorded on the company's balance sheet. Investors also form their own opinion of Global Blue's value that differs from its market value or its book value, called intrinsic value, which is Global Blue's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Global Blue's market value can be influenced by many factors that don't directly affect Global Blue's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Global Blue's value and its price as these two are different measures arrived at by different means. Investors typically determine if Global Blue is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Global Blue's 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.

Global Blue Group Return On Equity vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Global Blue's current stock value. Our valuation model uses many indicators to compare Global Blue value to that of its competitors to determine the firm's financial worth.
Global Blue Group is one of the top stocks in net income category among its peers. It also is one of the top stocks in return on equity category among its peers . The ratio of Net Income to Return On Equity for Global Blue Group is about  68,079,347 . At present, Global Blue's Net Income is projected to decrease significantly based on the last few years of reporting. 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 Global Blue's earnings, one of the primary drivers of an investment's value.

Global Blue's Earnings Breakdown by Geography

Global Return On Equity 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.

Global Blue

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
47.53 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.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Global Blue

Return On Equity

 = 

Net Income

Total Equity

 = 
0.7
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Global Return On Equity Comparison

Global Blue is currently under evaluation in return on equity category among its peers.

Global Blue Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Global Blue, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Global Blue will eventually generate negative long term returns. The profitability progress is the general direction of Global Blue's change in net profit over the period of time. It can combine multiple indicators of Global Blue, 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 Income-972.6 M-924 M
Net Loss-23.1 M-24.2 M
Income Tax Expense26.6 M27.9 M
Net Interest Income-51 M-48.4 M
Interest Income4.9 M5.2 M
Operating Income97.9 M102.8 M
Net Income From Continuing Ops20.9 M22 M
Income Before Tax47.5 M49.9 M
Total Other Income Expense Net-50.3 M-52.9 M
Net Income47.5 M49.9 M
Change To Netincome13.3 M25.7 M
Net Income Per Share 0.06  0.06 
Income Quality 2.53  4.83 
Net Income Per E B T 0.29  0.46 

Global Profitability Driver Comparison

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

Use Global Blue 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 Global Blue 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 Global Blue will appreciate offsetting losses from the drop in the long position's value.

Global Blue Pair Trading

Global Blue Group Pair Trading Analysis

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

In addition to having Global Blue 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.

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Run Diversified Assets Thematic Idea Now

Diversified Assets
Diversified Assets Theme
Pablicly traded close-end funds and other entities backed by different types of diversified investments. The Diversified Assets theme has 39 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 Diversified Assets Theme or any other thematic opportunities.
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Check out Risk vs Return Analysis.
You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
To fully project Global Blue's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Global Blue Group 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 Global Blue's income statement, its balance sheet, and the statement of cash flows.
Potential Global Blue investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Global Blue investors may work on each financial statement separately, they are all related. The changes in Global Blue's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Global Blue'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.