Ludan Engineering Return On Equity vs. Profit Margin
| LUDN Stock | ILS 2,265 20.00 0.88% |
For Ludan Engineering profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ludan Engineering to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ludan Engineering Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ludan Engineering's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ludan Engineering Co over time as well as its relative position and ranking within its peers.
Ludan |
Ludan Engineering Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ludan Engineering's current stock value. Our valuation model uses many indicators to compare Ludan Engineering value to that of its competitors to determine the firm's financial worth. Ludan Engineering Co is currently regarded as number one stock in return on equity category among its peers. It is rated second overall in profit margin category among its peers fabricating about 0.17 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Ludan Engineering Co is roughly 5.91 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Ludan Engineering by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ludan Engineering'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.Ludan 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.
Ludan Engineering |
| = | 0.27 |
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.
Ludan Engineering |
| = | 0.05 % |
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.
Ludan Profit Margin Comparison
Ludan Engineering is currently under evaluation in profit margin category among its peers.
Ludan Engineering Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ludan Engineering, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ludan Engineering will eventually generate negative long term returns. The profitability progress is the general direction of Ludan Engineering's change in net profit over the period of time. It can combine multiple indicators of Ludan Engineering, 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.
It offers engineering, procurement, construction supervision, and project management services, as well as turn-key projects. The company was founded in 1977 and is headquartered in Petah Tikva, Israel. LUDAN ENGINEERING operates under Engineering Construction classification in Israel and is traded on Tel Aviv Stock Exchange.
Ludan Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Ludan Engineering. 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 Ludan Engineering 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 Ludan Engineering's important profitability drivers and their relationship over time.
Use Ludan Engineering 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 Ludan Engineering 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 Ludan Engineering will appreciate offsetting losses from the drop in the long position's value.Ludan Engineering Pair Trading
Ludan Engineering Co Pair Trading Analysis
The ability to find closely correlated positions to Ludan Engineering could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ludan Engineering 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 Ludan Engineering - 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 Ludan Engineering Co to buy it.
The correlation of Ludan Engineering 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 Ludan Engineering moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ludan Engineering 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 Ludan Engineering 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 Ludan Engineering position
In addition to having Ludan Engineering 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 Money Funds Thematic Idea Now
Money Funds
Funds or Etfs that invest most if their asset in companies from financial sector such as commercial banks, insurance companies, investment funds, and real estate. The Money Funds theme has 32 constituents at this time.
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Other Information on Investing in Ludan Stock
To fully project Ludan Engineering's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ludan Engineering 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 Ludan Engineering's income statement, its balance sheet, and the statement of cash flows.