KMBB34 Return On Equity vs. Profit Margin
| KMBB34 Stock | BRL 823.20 23.73 2.97% |
For KMBB34 profitability analysis, we use financial ratios and fundamental drivers that measure the ability of KMBB34 to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well KMBB34 utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between KMBB34's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of KMBB34 over time as well as its relative position and ranking within its peers.
KMBB34 |
KMBB34 Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining KMBB34's current stock value. Our valuation model uses many indicators to compare KMBB34 value to that of its competitors to determine the firm's financial worth. KMBB34 is currently regarded as number one stock in return on equity category among its peers. It also is currently regarded as number one stock in profit margin category among its peers fabricating about 0.02 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for KMBB34 is roughly 48.47 . Comparative valuation analysis is a catch-all model that can be used if you cannot value KMBB34 by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for KMBB34's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.KMBB34 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.
KMBB34 |
| = | 584.6 |
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.
KMBB34 |
| = | 12.06 % |
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.
KMBB34 Profit Margin Comparison
KMBB34 is currently under evaluation in profit margin category among its peers.
KMBB34 Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in KMBB34, profitability is also one of the essential criteria for including it into their portfolios because, without profit, KMBB34 will eventually generate negative long term returns. The profitability progress is the general direction of KMBB34's change in net profit over the period of time. It can combine multiple indicators of KMBB34, 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.
Kimberly-Clark Corporation, together with its subsidiaries, manufactures and markets personal care and consumer tissue products worldwide. Kimberly-Clark Corporation was founded in 1872 and is headquartered in Dallas, Texas. KIMBERLY operates under Household Personal Products classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 46000 people.
KMBB34 Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on KMBB34. 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 KMBB34 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 KMBB34's important profitability drivers and their relationship over time.
Use KMBB34 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 KMBB34 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 KMBB34 will appreciate offsetting losses from the drop in the long position's value.KMBB34 Pair Trading
KMBB34 Pair Trading Analysis
The ability to find closely correlated positions to KMBB34 could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace KMBB34 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 KMBB34 - 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 KMBB34 to buy it.
The correlation of KMBB34 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 KMBB34 moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if KMBB34 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 KMBB34 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 KMBB34 position
In addition to having KMBB34 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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Other Information on Investing in KMBB34 Stock
To fully project KMBB34's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of KMBB34 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 KMBB34's income statement, its balance sheet, and the statement of cash flows.