GSI Technology Return On Equity vs. Operating Margin
| GSIT Stock | USD 2.75 0.09 3.17% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (0.56) | Current Value (0.53) | Quarterly Volatility 0.23182554 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.36 | 0.5432 |
|
|
For GSI Technology profitability analysis, we use financial ratios and fundamental drivers that measure the ability of GSI Technology to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well GSI Technology utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between GSI Technology's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of GSI Technology over time as well as its relative position and ranking within its peers.
GSI |
Is Semiconductors & Semiconductor Equipment 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 GSI Technology. If investors know GSI 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 GSI Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.60) | Revenue Per Share 0.777 | Quarterly Revenue Growth (0.20) | Return On Assets (0.27) | Return On Equity (0.39) |
The market value of GSI Technology is measured differently than its book value, which is the value of GSI that is recorded on the company's balance sheet. Investors also form their own opinion of GSI Technology's value that differs from its market value or its book value, called intrinsic value, which is GSI Technology'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 GSI Technology's market value can be influenced by many factors that don't directly affect GSI Technology'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 GSI Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if GSI Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GSI Technology'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.
GSI Technology Operating Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining GSI Technology's current stock value. Our valuation model uses many indicators to compare GSI Technology value to that of its competitors to determine the firm's financial worth. GSI Technology is rated # 4 in return on equity category among its peers. It is rated below average in operating margin category among its peers . At this time, GSI Technology's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value GSI Technology 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.GSI Operating 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.
GSI Technology |
| = | -0.39 |
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.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
GSI Technology |
| = | (1.15) % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
GSI Operating Margin Comparison
GSI Technology is currently under evaluation in operating margin category among its peers.
GSI Technology Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in GSI Technology, profitability is also one of the essential criteria for including it into their portfolios because, without profit, GSI Technology will eventually generate negative long term returns. The profitability progress is the general direction of GSI Technology's change in net profit over the period of time. It can combine multiple indicators of GSI Technology, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -87 K | -91.3 K | |
| Operating Income | -20.4 M | -19.4 M | |
| Income Before Tax | -20 M | -19 M | |
| Total Other Income Expense Net | 414 K | 434.7 K | |
| Net Loss | -20.1 M | -19.1 M | |
| Income Tax Expense | 70 K | 66.5 K | |
| Net Loss | -14.4 M | -13.7 M | |
| Net Loss | -20.1 M | -19.1 M | |
| Non Operating Income Net Other | 181.8 K | 286.5 K | |
| Interest Income | 541 K | 311.8 K | |
| Net Interest Income | 541 K | 296.4 K | |
| Change To Netincome | 2.9 M | 2.8 M | |
| Net Loss | (0.80) | (0.76) | |
| Income Quality | 0.86 | 1.06 | |
| Net Income Per E B T | 1.00 | 0.78 |
GSI Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on GSI Technology. 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 GSI Technology 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 GSI Technology's important profitability drivers and their relationship over time.
Use GSI Technology 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 GSI Technology 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 GSI Technology will appreciate offsetting losses from the drop in the long position's value.GSI Technology Pair Trading
GSI Technology Pair Trading Analysis
The ability to find closely correlated positions to GSI Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace GSI Technology 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 GSI Technology - 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 GSI Technology to buy it.
The correlation of GSI Technology 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 GSI Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if GSI Technology 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 GSI Technology 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 GSI Technology position
In addition to having GSI Technology 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 Small Growth Funds Thematic Idea Now
Small Growth Funds
Funds or Etfs that invest in stocks of small to mid-sized companies with above-average risk and growth rate that usually reinvest their earnings back into business. The Small Growth Funds theme has 46 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 Small Growth Funds Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for GSI Stock Analysis
When running GSI Technology's price analysis, check to measure GSI Technology'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 GSI Technology is operating at the current time. Most of GSI Technology's value examination focuses on studying past and present price action to predict the probability of GSI Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move GSI Technology's price. Additionally, you may evaluate how the addition of GSI Technology to your portfolios can decrease your overall portfolio volatility.