Iberdrola Profit Margin vs. Net Income
| IBE1 Stock | EUR 13.02 0.07 0.54% |
For Iberdrola profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Iberdrola to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Iberdrola SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Iberdrola's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Iberdrola SA over time as well as its relative position and ranking within its peers.
Iberdrola |
Iberdrola SA Net Income vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Iberdrola's current stock value. Our valuation model uses many indicators to compare Iberdrola value to that of its competitors to determine the firm's financial worth. Iberdrola SA is rated below average in profit margin category among its peers. It is rated second overall in net income category among its peers making up about 54,785,353,535 of Net Income 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 Iberdrola's earnings, one of the primary drivers of an investment's value.Iberdrola Net Income 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.
Iberdrola |
| = | 0.08 % |
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.
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.
Iberdrola |
| = | 4.34 B |
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.
Iberdrola Net Income Comparison
Iberdrola is currently regarded as number one stock in net income category among its peers.
Iberdrola Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Iberdrola, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Iberdrola will eventually generate negative long term returns. The profitability progress is the general direction of Iberdrola's change in net profit over the period of time. It can combine multiple indicators of Iberdrola, 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.
Iberdrola, S.A. engages in the generation, transmission, distribution and supply of electricity in the United States, the United Kingdom, Mexico, Brazil, and Europe. In addition, the company provides electric vehicles and smart meters operates PowerUp, an application, which allows customers to buy gas and electricity with their mobile phone and operates an online store where customers can search for, compare, and buy energy-efficient products. IBERDROLA INH operates under Utilities - Diversified classification in Germany and is traded on Frankfurt Stock Exchange. It employs 34210 people.
Iberdrola Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Iberdrola. 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 Iberdrola 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 Iberdrola's important profitability drivers and their relationship over time.
Use Iberdrola 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 Iberdrola 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 Iberdrola will appreciate offsetting losses from the drop in the long position's value.Iberdrola Pair Trading
Iberdrola SA Pair Trading Analysis
The ability to find closely correlated positions to Iberdrola could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Iberdrola 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 Iberdrola - 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 Iberdrola SA to buy it.
The correlation of Iberdrola 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 Iberdrola moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Iberdrola 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 Iberdrola 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 Iberdrola position
In addition to having Iberdrola 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 Automobiles and Trucks Thematic Idea Now
Automobiles and Trucks
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Automobiles and Trucks theme has 61 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 Automobiles and Trucks Theme or any other thematic opportunities.
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Other Information on Investing in Iberdrola Stock
To fully project Iberdrola's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Iberdrola SA 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 Iberdrola's income statement, its balance sheet, and the statement of cash flows.