Jeld Wen Return On Equity vs. Profit Margin

JELD Stock  USD 10.87  0.02  0.18%   
Considering Jeld Wen's profitability and operating efficiency indicators, Jeld Wen's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Jeld Wen's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.073409
Current Value
0.0697
Quarterly Volatility
2.19887185
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Jeld Wen's EV To Sales is projected to slightly decrease based on the last few years of reporting. The current year's Sales General And Administrative To Revenue is expected to grow to 0.15, whereas Days Sales Outstanding is forecasted to decline to 32.04. At present, Jeld Wen's Net Income is projected to increase significantly based on the last few years of reporting. The current year's Income Tax Expense is expected to grow to about 66.5 M, whereas Operating Income is forecasted to decline to about 135.4 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.160.1925
Significantly Down
Slightly volatile
For Jeld Wen profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Jeld Wen to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Jeld Wen Holding utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Jeld Wen's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Jeld Wen Holding over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Is Building Products 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 Jeld Wen. If investors know Jeld 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 Jeld Wen listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.15)
Earnings Share
(1.67)
Revenue Per Share
45.815
Quarterly Revenue Growth
(0.13)
Return On Assets
0.0118
The market value of Jeld Wen Holding is measured differently than its book value, which is the value of Jeld that is recorded on the company's balance sheet. Investors also form their own opinion of Jeld Wen's value that differs from its market value or its book value, called intrinsic value, which is Jeld Wen'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 Jeld Wen's market value can be influenced by many factors that don't directly affect Jeld Wen'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 Jeld Wen's value and its price as these two are different measures arrived at by different means. Investors typically determine if Jeld Wen is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Jeld Wen'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.

Jeld Wen Holding Profit Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Jeld Wen's current stock value. Our valuation model uses many indicators to compare Jeld Wen value to that of its competitors to determine the firm's financial worth.
Jeld Wen Holding is rated below average in return on equity category among its peers. It also is rated below average in profit margin category among its peers . At present, Jeld Wen's Return On Equity is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Jeld Wen 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.

Jeld 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.

Jeld Wen

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.18
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.

Jeld Wen

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.04) %
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.

Jeld Profit Margin Comparison

Jeld Wen is currently under evaluation in profit margin category among its peers.

Jeld Wen Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Jeld Wen, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Jeld Wen will eventually generate negative long term returns. The profitability progress is the general direction of Jeld Wen's change in net profit over the period of time. It can combine multiple indicators of Jeld Wen, 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
Accumulated Other Comprehensive Income-95.3 M-100.1 M
Operating Income141.6 M135.4 M
Income Before Tax88.6 M97.6 M
Total Other Income Expense Net-53 M-50.4 M
Net Income62.4 M87.2 M
Income Tax Expense63.3 M66.5 M
Net Income From Continuing Ops25.2 M24 M
Net Income Applicable To Common Shares52.6 M55.2 M
Interest Income74.1 M54.1 M
Net Interest Income-72.3 M-75.9 M
Non Operating Income Net Other63.1 M66.3 M
Change To Netincome98.5 M103.4 M
Net Income Per Share 0.73  0.64 
Income Quality 5.53  3.26 
Net Income Per E B T 0.71  1.07 

Jeld Profitability Driver Comparison

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

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When determining whether Jeld Wen Holding is a strong investment it is important to analyze Jeld Wen's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Jeld Wen's future performance. For an informed investment choice regarding Jeld Stock, refer to the following important reports:
Check out Risk vs Return Analysis.
You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
To fully project Jeld Wen's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Jeld Wen Holding 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 Jeld Wen's income statement, its balance sheet, and the statement of cash flows.
Potential Jeld Wen investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Jeld Wen investors may work on each financial statement separately, they are all related. The changes in Jeld Wen's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Jeld Wen'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.