Taking into consideration Laurentian Bank's profitability measurements, Laurentian Bank's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Laurentian Bank's ability to earn profits and add value for shareholders.
For Laurentian Bank profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Laurentian Bank to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Laurentian Bank utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Laurentian Bank's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Laurentian Bank over time as well as its relative position and ranking within its peers.
Please note, there is a significant difference between Laurentian Bank's value and its price as these two are different measures arrived at by different means. Investors typically determine if Laurentian Bank is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Laurentian Bank'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.
Laurentian Bank Current Valuation vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Laurentian Bank's current stock value. Our valuation model uses many indicators to compare Laurentian Bank value to that of its competitors to determine the firm's financial worth.
Laurentian Bank is currently regarded as number one stock in operating margin category among its peers. It also is considered the number one company in current valuation category among its peers reporting about 53,646,653,620 of Current Valuation per Operating Margin. At this time, Laurentian Bank's Operating Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Laurentian Bank by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Laurentian Bank'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.
Laurentian Current Valuation 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.
Laurentian Bank
Operating Margin
=
Operating Income
Revenue
X
100
=
0.20 %
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.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Laurentian Bank
Enterprise Value
=
Market Cap + Debt
-
Cash
=
10.97 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Laurentian Current Valuation vs Competition
Laurentian Bank is considered the number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is now estimated at about 11.2 Billion. Laurentian Bank totals roughly 10.97 Billion in current valuation claiming about 98% of equities under Financials industry.
The most important aspect of a successful company is its ability to generate a profit. For investors in Laurentian Bank, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Laurentian Bank will eventually generate negative long term returns. The profitability progress is the general direction of Laurentian Bank's change in net profit over the period of time. It can combine multiple indicators of Laurentian Bank, 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.
Profitability drivers are factors that can directly affect your investment outlook on Laurentian Bank. 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 Laurentian Bank 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 Laurentian Bank's important profitability drivers and their relationship over time.
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 Laurentian Bank 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 Laurentian Bank will appreciate offsetting losses from the drop in the long position's value.
Laurentian Bank Pair Trading
Laurentian Bank Pair Trading Analysis
The ability to find closely correlated positions to Laurentian Bank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Laurentian Bank 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 Laurentian Bank - 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 Laurentian Bank to buy it.
The correlation of Laurentian Bank 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 Laurentian Bank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Laurentian Bank 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 Laurentian Bank 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 Laurentian Bank position
In addition to having Laurentian Bank 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.
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ISP
Internet Service Providers (ISP) companies and IT providers specializing in internet technologies. The ISP theme has 39 constituents at this time.
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Other Information on Investing in Laurentian Stock
To fully project Laurentian Bank's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Laurentian Bank 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 Laurentian Bank's income statement, its balance sheet, and the statement of cash flows.
Potential Laurentian Bank investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Laurentian Bank investors may work on each financial statement separately, they are all related. The changes in Laurentian Bank's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Laurentian Bank'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.
