Kingspan Group Operating Margin vs. Return On Asset
| KRX Stock | EUR 71.10 1.35 1.94% |
For Kingspan Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Kingspan Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Kingspan Group plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Kingspan Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Kingspan Group plc over time as well as its relative position and ranking within its peers.
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Kingspan Group plc Return On Asset vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Kingspan Group's current stock value. Our valuation model uses many indicators to compare Kingspan Group value to that of its competitors to determine the firm's financial worth. Kingspan Group plc is rated below average in operating margin category among its peers. It is rated fifth overall in return on asset category among its peers reporting about 0.74 of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Kingspan Group plc is roughly 1.35 . 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 Kingspan Group's earnings, one of the primary drivers of an investment's value.Kingspan Return On Asset vs. Operating Margin
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.
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| = | 0.1 % |
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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Kingspan Group |
| = | 0.0719 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Kingspan Return On Asset Comparison
Kingspan Group is currently under evaluation in return on asset category among its peers.
Kingspan Group Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Kingspan Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Kingspan Group will eventually generate negative long term returns. The profitability progress is the general direction of Kingspan Group's change in net profit over the period of time. It can combine multiple indicators of Kingspan Group, 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.
Kingspan Group plc, together with its subsidiaries, provides insulation and building envelope solutions in the Republic of Ireland, the United Kingdom, rest of Europe, the Americas, and internationally. Kingspan Group plc was founded in 1965 and is headquartered in Kingscourt, Ireland. KINGSPAN GRP is traded on Frankfurt Stock Exchange in Germany.
Kingspan Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Kingspan Group. 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 Kingspan Group 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 Kingspan Group's important profitability drivers and their relationship over time.
Use Kingspan Group 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 Kingspan Group 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 Kingspan Group will appreciate offsetting losses from the drop in the long position's value.Kingspan Group Pair Trading
Kingspan Group plc Pair Trading Analysis
The ability to find closely correlated positions to Kingspan Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Kingspan Group 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 Kingspan Group - 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 Kingspan Group plc to buy it.
The correlation of Kingspan Group 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 Kingspan Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Kingspan Group plc 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 Kingspan Group 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 Kingspan Group position
In addition to having Kingspan Group 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 Adviser Favorites Thematic Idea Now
Adviser Favorites
Financial advisors frequently recommend that individuals diversify their investment portfolios with a mix of different types of stocks. These can include blue-chip stocks, growth stocks, and dividend stocks. The Adviser Favorites theme has 17 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 Adviser Favorites Theme or any other thematic opportunities.
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Other Information on Investing in Kingspan Stock
To fully project Kingspan Group's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Kingspan Group plc 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 Kingspan Group's income statement, its balance sheet, and the statement of cash flows.