MasterBrand Profit Margin vs. Operating Margin

MBC Stock   16.23  0.16  0.98%   
Based on the measurements of profitability obtained from MasterBrand's financial statements, MasterBrand may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess MasterBrand's ability to earn profits and add value for shareholders.

MasterBrand Net Profit Margin

0.0447

At present, MasterBrand's Operating Cash Flow Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's Days Of Sales Outstanding is expected to grow to 36.59, whereas Price To Sales Ratio is forecasted to decline to 0.40. The current year's Change To Netincome is expected to grow to about 87.7 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (3.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.230.29
Significantly Down
Pretty Stable
Net Profit Margin0.04470.0601
Way Down
Slightly volatile
Operating Profit Margin0.07440.1
Way Down
Pretty Stable
Pretax Profit Margin0.05950.0788
Way Down
Slightly volatile
Return On Assets0.05050.0688
Way Down
Very volatile
Return On Equity0.0880.14
Way Down
Slightly volatile
For MasterBrand profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MasterBrand to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MasterBrand utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MasterBrand's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MasterBrand over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
For information on how to trade MasterBrand Stock refer to our How to Trade MasterBrand Stock guide.
Is Apparel, Accessories & Luxury Goods 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 MasterBrand. If investors know MasterBrand 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 MasterBrand 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
(0.52)
Earnings Share
1.14
Revenue Per Share
21.341
Quarterly Revenue Growth
0.06
Return On Assets
0.0653
The market value of MasterBrand is measured differently than its book value, which is the value of MasterBrand that is recorded on the company's balance sheet. Investors also form their own opinion of MasterBrand's value that differs from its market value or its book value, called intrinsic value, which is MasterBrand'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 MasterBrand's market value can be influenced by many factors that don't directly affect MasterBrand'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 MasterBrand's value and its price as these two are different measures arrived at by different means. Investors typically determine if MasterBrand is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MasterBrand'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.

MasterBrand Operating Margin vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining MasterBrand's current stock value. Our valuation model uses many indicators to compare MasterBrand value to that of its competitors to determine the firm's financial worth.
MasterBrand is regarded fourth in profit margin category among its peers. It is regarded third in operating margin category among its peers reporting about  2.10  of Operating Margin per Profit Margin. At present, MasterBrand's Net Profit Margin is projected to increase slightly 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 MasterBrand's earnings, one of the primary drivers of an investment's value.

MasterBrand's Earnings Breakdown by Geography

MasterBrand Operating Margin vs. Profit Margin

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.

MasterBrand

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
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.
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.

MasterBrand

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.11 %
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.

MasterBrand Operating Margin Comparison

MasterBrand is currently under evaluation in operating margin category among its peers.

MasterBrand Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in MasterBrand, profitability is also one of the essential criteria for including it into their portfolios because, without profit, MasterBrand will eventually generate negative long term returns. The profitability progress is the general direction of MasterBrand's change in net profit over the period of time. It can combine multiple indicators of MasterBrand, 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 Income-3.7 M-3.9 M
Net Interest Income-46.5 M-44.2 M
Operating Income306.3 M279.8 M
Net Income From Continuing Ops182 M168.6 M
Income Before Tax238.7 M224.8 M
Total Other Income Expense Net-67.6 M-71 M
Net Income Applicable To Common Shares178.7 M160.7 M
Net Income182 M168.6 M
Income Tax Expense56.7 M56.2 M
Change To Netincome83.5 M87.7 M
Net Income Per Share 1.28  0.96 
Income Quality 2.01  1.19 
Net Income Per E B T 0.69  0.60 

MasterBrand Profitability Driver Comparison

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

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

MasterBrand Pair Trading

MasterBrand Pair Trading Analysis

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

In addition to having MasterBrand 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 Toys Thematic Idea Now

Toys
Toys Theme
Companies producing and distributing toys and different gaming products for kids. The Toys theme has 45 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 Toys Theme or any other thematic opportunities.
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When determining whether MasterBrand offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of MasterBrand'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 Masterbrand Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Masterbrand Stock:
Check out Correlation Analysis.
For information on how to trade MasterBrand Stock refer to our How to Trade MasterBrand Stock guide.
You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
To fully project MasterBrand's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of MasterBrand 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 MasterBrand's income statement, its balance sheet, and the statement of cash flows.
Potential MasterBrand investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although MasterBrand investors may work on each financial statement separately, they are all related. The changes in MasterBrand's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on MasterBrand'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.