Canadian Life Operating Margin vs. Debt To Equity

LFE-PB Preferred Stock  CAD 10.53  0.02  0.19%   
Based on the measurements of profitability obtained from Canadian Life's financial statements, Canadian Life Companies may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Canadian Life's ability to earn profits and add value for shareholders.
For Canadian Life profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Canadian Life to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Canadian Life Companies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Canadian Life's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Canadian Life Companies 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 Canadian Life's value and its price as these two are different measures arrived at by different means. Investors typically determine if Canadian Life is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Canadian Life'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.

Canadian Life Companies Debt To Equity vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Canadian Life's current stock value. Our valuation model uses many indicators to compare Canadian Life value to that of its competitors to determine the firm's financial worth.
Canadian Life Companies is currently regarded as number one stock in operating margin category among its peers. It also is currently regarded as number one stock in debt to equity category among its peers fabricating about  91.51  of Debt To Equity per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Canadian Life by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Canadian Life's Preferred 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.

Canadian Debt To Equity 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.

Canadian Life

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
3.07 %
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.
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.

Canadian Life

D/E

 = 

Total Debt

Total Equity

 = 
281.00 %
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.

Canadian Debt To Equity Comparison

Canadian Life is currently under evaluation in debt to equity category among its peers.

Canadian Life Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Canadian Life, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Canadian Life will eventually generate negative long term returns. The profitability progress is the general direction of Canadian Life's change in net profit over the period of time. It can combine multiple indicators of Canadian Life, 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.
Canadian Life Companies Split Corp. is a closed-ended equity mutual fund launched and managed by Quadravest Capital Management Inc. Canadian Life Companies Split Corp. was formed on April 18, 2005 and is domiciled in Canada. CANADIAN LIFE operates under Asset Management classification in Canada and is traded on Toronto Stock Exchange.

Canadian Profitability Driver Comparison

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

Use Canadian Life 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 Canadian Life 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 Canadian Life will appreciate offsetting losses from the drop in the long position's value.

Canadian Life Pair Trading

Canadian Life Companies Pair Trading Analysis

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

In addition to having Canadian Life 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 Penny Thematic Idea Now

Penny
Penny Theme
Solid stocks, funds or ETFs with below average market capitalization and typicl daily price below 2. The Penny theme has 56 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 Penny Theme or any other thematic opportunities.
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Other Information on Investing in Canadian Preferred Stock

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