NextSource Materials Profitability Analysis
| NEXT Stock | CAD 0.52 0.02 4.00% |
Net Loss | First Reported 2004-12-31 | Previous Quarter -3.5 M | Current Value -2.8 M | Quarterly Volatility 3.6 M |
For NextSource Materials profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NextSource Materials to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NextSource Materials utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NextSource Materials's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NextSource Materials over time as well as its relative position and ranking within its peers.
NextSource |
NextSource Materials Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NextSource Materials's current stock value. Our valuation model uses many indicators to compare NextSource Materials value to that of its competitors to determine the firm's financial worth. NextSource Materials is regarded fourth in return on equity category among its peers. It is regarded second in return on asset category among its peers . At this time, NextSource Materials' Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value NextSource Materials by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for NextSource Materials' 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.NextSource Return On Asset 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.
NextSource Materials |
| = | -0.23 |
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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
NextSource Materials |
| = | -0.0632 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
NextSource Return On Asset Comparison
NextSource Materials is currently under evaluation in return on asset category among its peers.
NextSource Materials Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NextSource Materials, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NextSource Materials will eventually generate negative long term returns. The profitability progress is the general direction of NextSource Materials' change in net profit over the period of time. It can combine multiple indicators of NextSource Materials, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -1.3 M | -1.2 M | |
| Operating Income | -7.2 M | -7.5 M | |
| Income Before Tax | -8.8 M | -9.2 M | |
| Total Other Income Expense Net | -1.6 M | -1.7 M | |
| Net Loss | -8.8 M | -9.2 M | |
| Income Tax Expense | 246.4 K | 242.2 K | |
| Net Income From Continuing Ops | 17.4 M | 18.2 M | |
| Net Loss | -10.5 M | -11 M | |
| Net Interest Income | -128.4 K | -121.9 K | |
| Interest Income | 3.2 M | 3 M | |
| Change To Netincome | 4.1 M | 3 M | |
| Net Loss | (0.06) | (0.06) | |
| Income Quality | 1.02 | 0.56 | |
| Net Income Per E B T | 0.93 | 0.76 |
NextSource Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NextSource Materials. 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 NextSource Materials 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 NextSource Materials' important profitability drivers and their relationship over time.
Use NextSource Materials 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 NextSource Materials 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 NextSource Materials will appreciate offsetting losses from the drop in the long position's value.NextSource Materials Pair Trading
NextSource Materials Pair Trading Analysis
The ability to find closely correlated positions to NextSource Materials could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NextSource Materials 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 NextSource Materials - 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 NextSource Materials to buy it.
The correlation of NextSource Materials 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 NextSource Materials moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NextSource Materials 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 NextSource Materials 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 NextSource Materials position
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Other Information on Investing in NextSource Stock
To fully project NextSource Materials' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of NextSource Materials 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 NextSource Materials' income statement, its balance sheet, and the statement of cash flows.