Loma Negra Return On Asset vs. Return On Equity

LOMA Stock  USD 12.46  0.24  1.96%   
Based on the key profitability measurements obtained from Loma Negra's financial statements, Loma Negra's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Loma Negra's ability to earn profits and add value for shareholders. At present, Loma Negra's Price To Sales Ratio is projected to slightly decrease based on the last few years of reporting. The current year's Days Sales Outstanding is expected to grow to 35.97, whereas Sales General And Administrative To Revenue is forecasted to decline to 0.03. At present, Loma Negra's Accumulated Other Comprehensive Income is projected to increase significantly based on the last few years of reporting. The current year's Net Income From Continuing Ops is expected to grow to about 34.4 B, whereas Operating Income is forecasted to decline to about 34.5 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.310.2509
Fairly Up
Slightly volatile
Net Profit Margin0.02320.0244
Notably Down
Slightly volatile
Operating Profit Margin0.240.1484
Way Up
Slightly volatile
Pretax Profit Margin0.03920.0413
Notably Down
Slightly volatile
Return On Assets0.01530.0161
Notably Down
Very volatile
Return On Equity0.03330.035
Notably Down
Very volatile
For Loma Negra profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Loma Negra to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Loma Negra Compania utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Loma Negra's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Loma Negra Compania over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Is Construction Materials space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Loma Negra. If investors know Loma will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Loma Negra listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.831
Earnings Share
0.6
Revenue Per Share
2.2 K
Quarterly Revenue Growth
1.436
Return On Assets
0.0255
The market value of Loma Negra Compania is measured differently than its book value, which is the value of Loma that is recorded on the company's balance sheet. Investors also form their own opinion of Loma Negra's value that differs from its market value or its book value, called intrinsic value, which is Loma Negra's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Loma Negra's market value can be influenced by many factors that don't directly affect Loma Negra's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Loma Negra's value and its price as these two are different measures arrived at by different means. Investors typically determine if Loma Negra is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Loma Negra'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.

Loma Negra Compania Return On Equity vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Loma Negra's current stock value. Our valuation model uses many indicators to compare Loma Negra value to that of its competitors to determine the firm's financial worth.
Loma Negra Compania is rated below average in return on asset category among its peers. It is rated below average in return on equity category among its peers reporting about  6.07  of Return On Equity per Return On Asset. At present, Loma Negra's Return On Equity is projected to slightly decrease based on the last few years of reporting. 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 Loma Negra's earnings, one of the primary drivers of an investment's value.

Loma Return On Equity vs. Return On Asset

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.

Loma Negra

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0255
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.
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.

Loma Negra

Return On Equity

 = 

Net Income

Total Equity

 = 
0.15
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.

Loma Return On Equity Comparison

Loma Negra is currently under evaluation in return on equity category among its peers.

Loma Negra Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Loma Negra, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Loma Negra will eventually generate negative long term returns. The profitability progress is the general direction of Loma Negra's change in net profit over the period of time. It can combine multiple indicators of Loma Negra, 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
Accumulated Other Comprehensive Income165.4 B173.7 B
Operating Income62.6 B34.5 B
Net Income From Continuing Ops32.8 B34.4 B
Income Before Tax17.4 B18.9 B
Total Other Income Expense Net-45.2 B-43 B
Net Income Applicable To Common Shares2.2 B3.6 B
Net Income9.7 BB
Income Tax Expense7.7 B10.8 B
Net Interest Income44.5 B46.7 B
Interest Income2.2 B2.3 B
Change To Netincome12 B12.6 B
Net Income Per Share 17.66  35.24 
Income Quality 8.25  4.90 
Net Income Per E B T 0.59  0.73 

Loma Profitability Driver Comparison

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

Use Loma Negra 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 Loma Negra 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 Loma Negra will appreciate offsetting losses from the drop in the long position's value.

Loma Negra Pair Trading

Loma Negra Compania Pair Trading Analysis

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

In addition to having Loma Negra 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 Baby Boomer Prospects Thematic Idea Now

Baby Boomer Prospects
Baby Boomer Prospects Theme
Equities with large market capitalization that account for significant contribution to overall economic growth especially within dividend-paying instruments and stocks from healthcare and financial sectors. The Baby Boomer Prospects theme has 98 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 Baby Boomer Prospects Theme or any other thematic opportunities.
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When determining whether Loma Negra Compania offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Loma Negra's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Loma Negra Compania Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Loma Negra Compania Stock:
Check out Correlation Analysis.
You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
To fully project Loma Negra's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Loma Negra Compania 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 Loma Negra's income statement, its balance sheet, and the statement of cash flows.
Potential Loma Negra investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Loma Negra investors may work on each financial statement separately, they are all related. The changes in Loma Negra's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Loma Negra'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.