Mersen SA Operating Margin vs. Revenue
| MRN Stock | EUR 19.58 0.44 2.30% |
For Mersen SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Mersen SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Mersen SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Mersen SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Mersen SA over time as well as its relative position and ranking within its peers.
Mersen |
Mersen SA Revenue vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Mersen SA's current stock value. Our valuation model uses many indicators to compare Mersen SA value to that of its competitors to determine the firm's financial worth. Mersen SA is considered to be number one stock in operating margin category among its peers. It also is rated top company in revenue category among its peers totaling about 8,881,616,939 of Revenue per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Mersen SA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Mersen SA'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.Mersen Revenue 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.
Mersen SA |
| = | 0.10 % |
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.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Mersen SA |
| = | 922.8 M |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Mersen Revenue vs Competition
Mersen SA is rated top company in revenue category among its peers. Market size based on revenue of Electrical Equipment & Parts industry is now estimated at about 17.14 Billion. Mersen SA holds roughly 922.8 Million in revenue claiming about 5% of equities under Electrical Equipment & Parts industry.
Mersen SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Mersen SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Mersen SA will eventually generate negative long term returns. The profitability progress is the general direction of Mersen SA's change in net profit over the period of time. It can combine multiple indicators of Mersen 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.
Mersen SA manufactures and sells electrical power products and advanced materials in France, North America, rest of Europe, the Asia-Pacific, and internationally. Mersen SA was founded in 1889 and is headquartered in Paris, France. MERSEN operates under Electrical Equipment Parts classification in France and is traded on Paris Stock Exchange. It employs 6866 people.
Mersen Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Mersen 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 Mersen 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 Mersen SA's important profitability drivers and their relationship over time.
Use Mersen 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 Mersen 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 Mersen SA will appreciate offsetting losses from the drop in the long position's value.Mersen SA Pair Trading
Mersen SA Pair Trading Analysis
The ability to find closely correlated positions to Mersen 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 Mersen 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 Mersen 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 Mersen SA to buy it.
The correlation of Mersen 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 Mersen SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Mersen 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 Mersen 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 Mersen SA position
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Other Information on Investing in Mersen Stock
To fully project Mersen SA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Mersen 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 Mersen SA's income statement, its balance sheet, and the statement of cash flows.