Newgen Software Net Income vs. Price To Book

NEWGEN Stock   1,585  11.30  0.72%   
Based on the measurements of profitability obtained from Newgen Software's financial statements, Newgen Software Technologies may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Newgen Software's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2017-06-30
Previous Quarter
475.7 M
Current Value
703.3 M
Quarterly Volatility
261.2 M
 
Covid
For Newgen Software profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Newgen Software to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Newgen Software Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Newgen Software's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Newgen Software Technologies over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between Newgen Software's value and its price as these two are different measures arrived at by different means. Investors typically determine if Newgen Software is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Newgen Software'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.

Newgen Software Tech Price To Book vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Newgen Software's current stock value. Our valuation model uses many indicators to compare Newgen Software value to that of its competitors to determine the firm's financial worth.
Newgen Software Technologies is considered to be number one stock in net income category among its peers. It also is considered to be number one stock in price to book category among its peers . The ratio of Net Income to Price To Book for Newgen Software Technologies is about  148,367,751 . At present, Newgen Software's Net Income is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value Newgen Software by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Newgen Software'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.

Newgen Price To Book vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Newgen Software

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
2.52 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Newgen Software

P/B

 = 

MV Per Share

BV Per Share

 = 
16.96 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

Newgen Price To Book Comparison

Newgen Software is currently under evaluation in price to book category among its peers.

Newgen Software Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Newgen Software, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Newgen Software will eventually generate negative long term returns. The profitability progress is the general direction of Newgen Software's change in net profit over the period of time. It can combine multiple indicators of Newgen Software, 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 Income801.2 M841.2 M
Operating Income2.6 B2.7 B
Income Before TaxB3.2 B
Total Other Income Expense Net438.8 M460.8 M
Net Income2.5 B1.3 B
Income Tax Expense526.2 M286.6 M
Net Income From Continuing Ops2.5 B2.6 B
Net Income Applicable To Common SharesB2.1 B
Interest Income48.9 M79.7 M
Net Interest Income-41.8 M-43.9 M
Change To Netincome93 M121.8 M

Newgen Profitability Driver Comparison

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

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

Newgen Software Pair Trading

Newgen Software Technologies Pair Trading Analysis

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

In addition to having Newgen Software 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 FinTech Thematic Idea Now

FinTech
FinTech Theme
High long term potential financial entities that are ranging from payment processing, investment management to commercial and investment banking. The FinTech theme has 81 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 FinTech Theme or any other thematic opportunities.
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Other Information on Investing in Newgen Stock

To fully project Newgen Software's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Newgen Software Tech 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 Newgen Software's income statement, its balance sheet, and the statement of cash flows.
Potential Newgen Software investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Newgen Software investors may work on each financial statement separately, they are all related. The changes in Newgen Software's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Newgen Software'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.