Grendene Profit Margin vs. Price To Earning
| GRND3 Stock | BRL 5.22 0.07 1.36% |
For Grendene profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Grendene to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Grendene SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Grendene's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Grendene SA over time as well as its relative position and ranking within its peers.
Grendene |
Grendene SA Price To Earning vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Grendene's current stock value. Our valuation model uses many indicators to compare Grendene value to that of its competitors to determine the firm's financial worth. Grendene SA is rated # 3 in profit margin category among its peers. It also is rated # 3 in price to earning category among its peers reporting about 58.05 of Price To Earning per Profit Margin. 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 Grendene's earnings, one of the primary drivers of an investment's value.Grendene Price To Earning vs. Profit Margin
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.
Grendene |
| = | 0.23 % |
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.
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.
Grendene |
| = | 13.63 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.
Grendene Price To Earning Comparison
Grendene is rated # 2 in price to earning category among its peers.
Grendene Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Grendene, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Grendene will eventually generate negative long term returns. The profitability progress is the general direction of Grendene's change in net profit over the period of time. It can combine multiple indicators of Grendene, 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.
Grendene S.A. develops, manufactures, distributes, and sells footwear for men, women, and children primarily in Brazil. Grendene S.A. was founded in 1971 and is headquartered in Sobral, Brazil. GRENDENE operates under Footwear Accessories classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 20240 people.
Grendene Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Grendene. 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 Grendene 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 Grendene's important profitability drivers and their relationship over time.
Use Grendene 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 Grendene 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 Grendene will appreciate offsetting losses from the drop in the long position's value.Grendene Pair Trading
Grendene SA Pair Trading Analysis
The ability to find closely correlated positions to Grendene could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Grendene 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 Grendene - 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 Grendene SA to buy it.
The correlation of Grendene 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 Grendene moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Grendene SA 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 Grendene 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 Grendene position
In addition to having Grendene 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 Tools for Grendene Stock Analysis
When running Grendene's price analysis, check to measure Grendene'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 Grendene is operating at the current time. Most of Grendene's value examination focuses on studying past and present price action to predict the probability of Grendene's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Grendene's price. Additionally, you may evaluate how the addition of Grendene to your portfolios can decrease your overall portfolio volatility.