Brompton Lifeco Return On Equity vs. Profit Margin

LCS Stock  CAD 10.18  0.14  1.36%   
Considering Brompton Lifeco's profitability and operating efficiency indicators, Brompton Lifeco's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Brompton Lifeco's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.55163649
Current Value
0.58
Quarterly Volatility
0.5947351
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Brompton Lifeco's Days Sales Outstanding is very stable compared to the past year. As of the 5th of December 2024, EV To Sales is likely to grow to 6.66, while Price To Sales Ratio is likely to drop 1.60. At this time, Brompton Lifeco's Income Quality is very stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.831.07
Significantly Down
Pretty Stable
For Brompton Lifeco profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Brompton Lifeco to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Brompton Lifeco Split utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Brompton Lifeco's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Brompton Lifeco Split over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between Brompton Lifeco's value and its price as these two are different measures arrived at by different means. Investors typically determine if Brompton Lifeco is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brompton Lifeco'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.

Brompton Lifeco Split Profit Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Brompton Lifeco's current stock value. Our valuation model uses many indicators to compare Brompton Lifeco value to that of its competitors to determine the firm's financial worth.
Brompton Lifeco Split is rated second overall in return on equity category among its peers. It also is rated second overall in profit margin category among its peers fabricating about  2.75  of Profit Margin per Return On Equity. At this time, Brompton Lifeco's Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Brompton Lifeco by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Brompton Lifeco'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.

Brompton 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.

Brompton Lifeco

Return On Equity

 = 

Net Income

Total Equity

 = 
0.23
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.

Brompton Lifeco

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.63 %
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.

Brompton Profit Margin Comparison

Brompton Lifeco is currently under evaluation in profit margin category among its peers.

Brompton Lifeco Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Brompton Lifeco, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Brompton Lifeco will eventually generate negative long term returns. The profitability progress is the general direction of Brompton Lifeco's change in net profit over the period of time. It can combine multiple indicators of Brompton Lifeco, 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
Operating Income30.8 M32.3 M
Income Before Tax30.7 M32.3 M
Total Other Income Expense Net-50.5 K-53 K
Net Income25.4 M26.7 M
Income Tax Expense25.4 M26.7 M
Net Income From Continuing Ops30.7 M32.3 M
Net Loss-10.6 M-10.1 M
Net Interest Income(18.00)(17.10)
Change To Netincome-4.9 M-5.1 M
Net Income Per Share 3.65  3.83 
Income Quality 0.83  0.87 
Net Income Per E B T 1.48  0.76 

Brompton Profitability Driver Comparison

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

Use Brompton Lifeco 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 Brompton Lifeco 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 Brompton Lifeco will appreciate offsetting losses from the drop in the long position's value.

Brompton Lifeco Pair Trading

Brompton Lifeco Split Pair Trading Analysis

The ability to find closely correlated positions to Brompton Lifeco could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Brompton Lifeco 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 Brompton Lifeco - 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 Brompton Lifeco Split to buy it.
The correlation of Brompton Lifeco 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 Brompton Lifeco moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Brompton Lifeco Split 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 Brompton Lifeco 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Brompton Lifeco position

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Other Information on Investing in Brompton Stock

To fully project Brompton Lifeco's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Brompton Lifeco Split 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 Brompton Lifeco's income statement, its balance sheet, and the statement of cash flows.
Potential Brompton Lifeco investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Brompton Lifeco investors may work on each financial statement separately, they are all related. The changes in Brompton Lifeco's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Brompton Lifeco'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.