Gevo Price To Book vs. Net Income

GEVO Stock  USD 1.50  0.05  3.23%   
Considering Gevo's profitability and operating efficiency indicators, Gevo Inc may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess Gevo's ability to earn profits and add value for shareholders. As of the 9th of December 2024, Price To Sales Ratio is likely to drop to 15.29. In addition to that, Days Sales Outstanding is likely to drop to 58.33. At this time, Gevo's Change To Netincome is very stable compared to the past year.
For Gevo profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Gevo to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Gevo Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Gevo's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Gevo Inc over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Is Oil & Gas Refining & Marketing 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 Gevo. If investors know Gevo 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 Gevo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.33)
Revenue Per Share
0.065
Quarterly Revenue Growth
(0.57)
Return On Assets
(0.09)
Return On Equity
(0.15)
The market value of Gevo Inc is measured differently than its book value, which is the value of Gevo that is recorded on the company's balance sheet. Investors also form their own opinion of Gevo's value that differs from its market value or its book value, called intrinsic value, which is Gevo'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 Gevo's market value can be influenced by many factors that don't directly affect Gevo'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 Gevo's value and its price as these two are different measures arrived at by different means. Investors typically determine if Gevo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gevo'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.

Gevo Inc Net Income vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Gevo's current stock value. Our valuation model uses many indicators to compare Gevo value to that of its competitors to determine the firm's financial worth.
Gevo Inc is one of the top stocks in price to book category among its peers. It also is one of the top stocks in net income category among its peers . Gevo reported last year Net Loss of (66.22 Million). 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 Gevo's earnings, one of the primary drivers of an investment's value.

Gevo Net Income vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Gevo

P/B

 = 

MV Per Share

BV Per Share

 = 
0.74 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.

Gevo

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
(66.22 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.

Gevo Net Income Comparison

Gevo is currently under evaluation in net income category among its peers.

Gevo Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Gevo, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Gevo will eventually generate negative long term returns. The profitability progress is the general direction of Gevo's change in net profit over the period of time. It can combine multiple indicators of Gevo, 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
Operating Income-81.8 M-77.7 M
Income Before Tax-66.2 M-69.5 M
Total Other Income Expense Net15.6 M16.4 M
Net Loss-66.2 M-69.5 M
Income Tax Expense18.8 M19.8 M
Net Loss-73.1 M-76.8 M
Non Operating Income Net Other5.3 M5.5 M
Net Loss-88.2 M-83.8 M
Interest Income19.1 M20 M
Net Interest Income10.5 M11.1 M
Change To Netincome50.1 M52.6 M
Net Loss(0.28)(0.29)
Income Quality 0.81  0.80 
Net Income Per E B T 1.09  0.82 

Gevo Profitability Driver Comparison

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

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

Gevo Pair Trading

Gevo Inc Pair Trading Analysis

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

In addition to having Gevo 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 Commodities Funds Thematic Idea Now

Commodities Funds
Commodities Funds Theme
Funds or Etfs investing in commodities such as oil, gold, corn, soy, and agricultural goods. The Commodities Funds theme has 44 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 Commodities Funds Theme or any other thematic opportunities.
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When determining whether Gevo Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Gevo's 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 Gevo Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Gevo Inc Stock:
Check out Risk vs Return Analysis.
You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
To fully project Gevo's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Gevo Inc 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 Gevo's income statement, its balance sheet, and the statement of cash flows.
Potential Gevo investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Gevo investors may work on each financial statement separately, they are all related. The changes in Gevo's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Gevo'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.