North American Return On Asset vs. Cash And Equivalents

NOA Stock  CAD 28.47  0.37  1.32%   
Considering North American's profitability and operating efficiency indicators, North American Construction is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess North American's ability to earn profits and add value for shareholders. At this time, North American's Price To Sales Ratio is very stable compared to the past year. As of the 5th of December 2024, Days Sales Outstanding is likely to grow to 80.83, while EV To Sales is likely to drop 1.25. At this time, North American's Net Income Per Share is very stable compared to the past year. As of the 5th of December 2024, Income Quality is likely to grow to 4.50, while Accumulated Other Comprehensive Income is likely to drop (427.4 K).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.150.1611
Significantly Down
Slightly volatile
For North American profitability analysis, we use financial ratios and fundamental drivers that measure the ability of North American to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well North American Construction utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between North American's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of North American Construction 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 North American's value and its price as these two are different measures arrived at by different means. Investors typically determine if North American is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, North American'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.

North American Const Cash And Equivalents vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining North American's current stock value. Our valuation model uses many indicators to compare North American value to that of its competitors to determine the firm's financial worth.
North American Construction is regarded fifth in return on asset category among its peers. It is considered to be number one stock in cash and equivalents category among its peers creating about  489,441,748  of Cash And Equivalents per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value North American by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for North American'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.

North Cash And Equivalents vs. Return On Asset

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.

North American

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0824
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.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

North American

Cash

 = 

Bank Deposits

+

Liquidities

 = 
40.33 M
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

North Cash And Equivalents Comparison

North American is currently under evaluation in cash and equivalents category among its peers.

North American Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in North American, profitability is also one of the essential criteria for including it into their portfolios because, without profit, North American will eventually generate negative long term returns. The profitability progress is the general direction of North American's change in net profit over the period of time. It can combine multiple indicators of North American, 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-407 K-427.4 K
Operating Income95.7 M100.5 M
Income Before Tax86 M90.3 M
Total Other Income Expense Net-9.8 M-10.2 M
Net Income63.1 M66.3 M
Income Tax Expense22.8 M24 M
Net Income From Continuing Ops63.1 M66.3 M
Net Income Applicable To Common Shares77.5 M81.4 M
Interest Income15.3 M9.4 M
Net Interest Income-36.9 M-35.1 M
Change To Netincome-6 M-5.7 M
Net Income Per Share 2.38  2.50 
Income Quality 4.28  4.50 
Net Income Per E B T 0.73  0.51 

North Profitability Driver Comparison

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

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

North American Pair Trading

North American Construction Pair Trading Analysis

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

In addition to having North American 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.

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Monster Funds
Monster Funds Theme
Solid funds with above average long term performance indicators based on Macroaxis rating system. The Monster Funds theme has 50 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 Monster Funds Theme or any other thematic opportunities.
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When determining whether North American Const offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of North American'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 North American Construction Stock. Outlined below are crucial reports that will aid in making a well-informed decision on North American Construction Stock:
Check out Correlation Analysis.
You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
To fully project North American's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of North American Const 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 North American's income statement, its balance sheet, and the statement of cash flows.
Potential North American investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although North American investors may work on each financial statement separately, they are all related. The changes in North American's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on North American'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.