SEIKOH GIKEN Return On Equity vs. Profit Margin
| GIK Stock | EUR 12.75 0.00 0.00% |
For SEIKOH GIKEN profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SEIKOH GIKEN to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SEIKOH GIKEN Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SEIKOH GIKEN's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SEIKOH GIKEN Co over time as well as its relative position and ranking within its peers.
SEIKOH |
SEIKOH GIKEN Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining SEIKOH GIKEN's current stock value. Our valuation model uses many indicators to compare SEIKOH GIKEN value to that of its competitors to determine the firm's financial worth. SEIKOH GIKEN Co is rated # 4 in return on equity category among its peers. It is rated # 3 in profit margin category among its peers fabricating about 1.50 of Profit Margin per Return On Equity. 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 SEIKOH GIKEN's earnings, one of the primary drivers of an investment's value.SEIKOH Profit Margin vs. Return On Equity
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.
SEIKOH GIKEN |
| = | 0.0478 |
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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
SEIKOH GIKEN |
| = | 0.07 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
SEIKOH Profit Margin Comparison
SEIKOH GIKEN is rated # 2 in profit margin category among its peers.
SEIKOH GIKEN Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in SEIKOH GIKEN, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SEIKOH GIKEN will eventually generate negative long term returns. The profitability progress is the general direction of SEIKOH GIKEN's change in net profit over the period of time. It can combine multiple indicators of SEIKOH GIKEN, 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.
SEIKOH GIKEN Co., Ltd. designs, develops, manufactures, and sells molds and optical communication devices in Japan and internationally. SEIKOH GIKEN Co., Ltd. was founded in 1972 and is headquartered in Matsudo, Japan. SEIKOH GIKEN operates under Data Storage classification in Germany and is traded on Munich Stock Exchange. It employs 898 people.
SEIKOH Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on SEIKOH GIKEN. 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 SEIKOH GIKEN 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 SEIKOH GIKEN's important profitability drivers and their relationship over time.
Use SEIKOH GIKEN 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 SEIKOH GIKEN 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 SEIKOH GIKEN will appreciate offsetting losses from the drop in the long position's value.SEIKOH GIKEN Pair Trading
SEIKOH GIKEN Co Pair Trading Analysis
The ability to find closely correlated positions to SEIKOH GIKEN could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SEIKOH GIKEN 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 SEIKOH GIKEN - 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 SEIKOH GIKEN Co to buy it.
The correlation of SEIKOH GIKEN 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 SEIKOH GIKEN moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SEIKOH GIKEN 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 SEIKOH GIKEN 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 SEIKOH GIKEN position
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Additional Tools for SEIKOH Stock Analysis
When running SEIKOH GIKEN's price analysis, check to measure SEIKOH GIKEN's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy SEIKOH GIKEN is operating at the current time. Most of SEIKOH GIKEN's value examination focuses on studying past and present price action to predict the probability of SEIKOH GIKEN's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move SEIKOH GIKEN's price. Additionally, you may evaluate how the addition of SEIKOH GIKEN to your portfolios can decrease your overall portfolio volatility.