LOral SA Operating Margin vs. Profit Margin
| LOR Stock | EUR 337.70 1.30 0.38% |
For LOral SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LOral SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LOral SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LOral SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LOral SA over time as well as its relative position and ranking within its peers.
LOral |
LOral SA Profit Margin vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining LOral SA's current stock value. Our valuation model uses many indicators to compare LOral SA value to that of its competitors to determine the firm's financial worth. LOral SA is rated below average in operating margin category among its peers. It is rated fifth overall in profit margin category among its peers fabricating about 0.77 of Profit Margin per Operating Margin. The ratio of Operating Margin to Profit Margin for LOral SA is roughly 1.31 . 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 LOral SA's earnings, one of the primary drivers of an investment's value.LOral Profit Margin 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.
LOral SA |
| = | 0.19 % |
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.
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.
LOral SA |
| = | 0.15 % |
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.
LOral Profit Margin Comparison
LOral SA is rated third overall in profit margin category among its peers.
LOral SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in LOral SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, LOral SA will eventually generate negative long term returns. The profitability progress is the general direction of LOral SA's change in net profit over the period of time. It can combine multiple indicators of LOral SA, 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.
LOral S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. The company was founded in 1909 and is headquartered in Clichy, France. OREAL INH is traded on Frankfurt Stock Exchange in Germany.
LOral Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on LOral SA. 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 LOral SA 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 LOral SA's important profitability drivers and their relationship over time.
Use LOral SA 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 LOral SA 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 LOral SA will appreciate offsetting losses from the drop in the long position's value.LOral SA Pair Trading
LOral SA Pair Trading Analysis
The ability to find closely correlated positions to LOral SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LOral SA 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 LOral SA - 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 LOral SA to buy it.
The correlation of LOral SA 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 LOral SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LOral SA 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 LOral SA 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 LOral SA position
In addition to having LOral SA 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 Wholesale Thematic Idea Now
Wholesale
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Wholesale theme has 61 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 Wholesale Theme or any other thematic opportunities.
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Other Information on Investing in LOral Stock
To fully project LOral SA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of LOral SA 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 LOral SA's income statement, its balance sheet, and the statement of cash flows.