Nextgen Return On Equity vs. Net Income
| NXGN Stock | ILS 62.40 1.00 1.58% |
For Nextgen profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nextgen to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nextgen utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nextgen's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nextgen over time as well as its relative position and ranking within its peers.
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Nextgen Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nextgen's current stock value. Our valuation model uses many indicators to compare Nextgen value to that of its competitors to determine the firm's financial worth. Nextgen is regarded fourth in return on equity category among its peers. It is considered to be number one stock in net income category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Nextgen by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nextgen'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.Nextgen Net Income 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.
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| = | -0.52 |
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.
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.
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| = | (2.55 M) |
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.
Nextgen Net Income Comparison
Nextgen is currently under evaluation in net income category among its peers.
Nextgen Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nextgen, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nextgen will eventually generate negative long term returns. The profitability progress is the general direction of Nextgen's change in net profit over the period of time. It can combine multiple indicators of Nextgen, 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.
Nextgen Biomed Ltd, through its subsidiary, develops medicines for the treatment of psoriasis.
Nextgen Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nextgen. 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 Nextgen 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 Nextgen's important profitability drivers and their relationship over time.
Use Nextgen 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 Nextgen 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 Nextgen will appreciate offsetting losses from the drop in the long position's value.Nextgen Pair Trading
Nextgen Pair Trading Analysis
The ability to find closely correlated positions to Nextgen could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nextgen 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 Nextgen - 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 Nextgen to buy it.
The correlation of Nextgen 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 Nextgen moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nextgen 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 Nextgen 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 Nextgen position
In addition to having Nextgen 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 Entertainment Thematic Idea Now
Entertainment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Entertainment theme has 61 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 Entertainment Theme or any other thematic opportunities.
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Other Information on Investing in Nextgen Stock
To fully project Nextgen's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nextgen 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 Nextgen's income statement, its balance sheet, and the statement of cash flows.