Genesis Energy Price To Earning vs. Return On Asset

GEL Stock  USD 11.39  0.39  3.31%   
Based on the key profitability measurements obtained from Genesis Energy's financial statements, Genesis Energy LP is performing exceptionally good at this time. It has a great risk to showcase excellent profitability results in January. Profitability indicators assess Genesis Energy's ability to earn profits and add value for shareholders. Operating Cash Flow Sales Ratio is expected to rise to 0.17 this year, although the value of Price To Sales Ratio will most likely fall to 0.44. At this time, Genesis Energy's Net Income Per Share is quite stable compared to the past year. Income Quality is expected to rise to 4.65 this year, although the value of Income Tax Expense is projected to rise to (18.1 K).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.130.1244
Sufficiently Up
Slightly volatile
For Genesis Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Genesis Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Genesis Energy LP utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Genesis Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Genesis Energy LP over time as well as its relative position and ranking within its peers.
  

Genesis Energy's Revenue Breakdown by Earning Segment

Check out Risk vs Return Analysis.
Is Oil & Gas Storage & Transportation 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 Genesis Energy. If investors know Genesis 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 Genesis Energy 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
0.586
Dividend Share
0.615
Earnings Share
(0.74)
Revenue Per Share
24.612
Quarterly Revenue Growth
(0.12)
The market value of Genesis Energy LP is measured differently than its book value, which is the value of Genesis that is recorded on the company's balance sheet. Investors also form their own opinion of Genesis Energy's value that differs from its market value or its book value, called intrinsic value, which is Genesis Energy'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 Genesis Energy's market value can be influenced by many factors that don't directly affect Genesis Energy'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 Genesis Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Genesis Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Genesis Energy'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.

Genesis Energy LP Return On Asset vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Genesis Energy's current stock value. Our valuation model uses many indicators to compare Genesis Energy value to that of its competitors to determine the firm's financial worth.
Genesis Energy LP is rated # 3 in price to earning category among its peers. It is rated below average in return on asset category among its peers . The ratio of Price To Earning to Return On Asset for Genesis Energy LP is about  1,091 . Return On Assets is expected to rise to 0.02 this year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Genesis Energy by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Genesis Return On Asset vs. Price To Earning

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.

Genesis Energy

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
24.01 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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Genesis Energy

Return On Asset

 = 

Net Income

Total Assets

 = 
0.022
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Genesis Return On Asset Comparison

Genesis Energy is currently under evaluation in return on asset category among its peers.

Genesis Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Genesis Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Genesis Energy will eventually generate negative long term returns. The profitability progress is the general direction of Genesis Energy's change in net profit over the period of time. It can combine multiple indicators of Genesis Energy, 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 IncomeM8.4 M
Operating Income329.4 M345.9 M
Income Before Tax146.3 M153.6 M
Total Other Income Expense Net-183.1 M-173.9 M
Net Income117.7 M123.6 M
Income Tax Expense-19 K-18.1 K
Net Loss-4.1 M-3.9 M
Net Income From Continuing Ops146.3 M153.7 M
Non Operating Income Net Other50 M42.1 M
Interest Income197.7 M152.2 M
Net Interest Income-244.7 M-256.9 M
Change To Netincome-17 M-16.1 M
Net Income Per Share 0.96  1.01 
Income Quality 4.43  4.65 
Net Income Per E B T 0.80  0.76 

Genesis Profitability Driver Comparison

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

Use Genesis Energy 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 Genesis Energy 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 Genesis Energy will appreciate offsetting losses from the drop in the long position's value.

Genesis Energy Pair Trading

Genesis Energy LP Pair Trading Analysis

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

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When determining whether Genesis Energy LP is a strong investment it is important to analyze Genesis Energy's 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 Genesis Energy's future performance. For an informed investment choice regarding Genesis Stock, refer to the following important reports:
Check out Risk vs Return Analysis.
You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
To fully project Genesis Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Genesis Energy LP 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 Genesis Energy's income statement, its balance sheet, and the statement of cash flows.
Potential Genesis Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Genesis Energy investors may work on each financial statement separately, they are all related. The changes in Genesis Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Genesis Energy'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.