Offerpad Solutions Return On Asset vs. Price To Earning

OPAD Stock  USD 3.99  0.23  5.45%   
Based on Offerpad Solutions' profitability indicators, Offerpad Solutions may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Offerpad Solutions' ability to earn profits and add value for shareholders. The current year's Price To Sales Ratio is expected to grow to 0.33. The current year's Days Sales Outstanding is expected to grow to 2.90. At present, Offerpad Solutions' Change To Netincome is projected to increase significantly based on the last few years of reporting. The current year's Net Income Per E B T is expected to grow to 1.10, whereas Net Interest Income is forecasted to decline to (30.3 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.07850.0534
Way Up
Pretty Stable
For Offerpad Solutions profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Offerpad Solutions to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Offerpad Solutions utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Offerpad Solutions's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Offerpad Solutions over time as well as its relative position and ranking within its peers.
  
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For information on how to trade Offerpad Stock refer to our How to Trade Offerpad Stock guide.
Is Real Estate Management & Development space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Offerpad Solutions. If investors know Offerpad will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Offerpad Solutions listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(2.18)
Revenue Per Share
35.993
Quarterly Revenue Growth
(0.11)
Return On Assets
(0.07)
Return On Equity
(0.67)
The market value of Offerpad Solutions is measured differently than its book value, which is the value of Offerpad that is recorded on the company's balance sheet. Investors also form their own opinion of Offerpad Solutions' value that differs from its market value or its book value, called intrinsic value, which is Offerpad Solutions' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Offerpad Solutions' market value can be influenced by many factors that don't directly affect Offerpad Solutions' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Offerpad Solutions' value and its price as these two are different measures arrived at by different means. Investors typically determine if Offerpad Solutions is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Offerpad Solutions' 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.

Offerpad Solutions Price To Earning vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Offerpad Solutions's current stock value. Our valuation model uses many indicators to compare Offerpad Solutions value to that of its competitors to determine the firm's financial worth.
Offerpad Solutions is rated below average in return on asset category among its peers. It is rated below average in price to earning category among its peers . Comparative valuation analysis is a catch-all technique that is used if you cannot value Offerpad Solutions by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Offerpad Price To Earning 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.

Offerpad Solutions

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0717
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.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Offerpad Solutions

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
12.55 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Offerpad Price To Earning Comparison

Offerpad Solutions is currently under evaluation in price to earning category among its peers.

Offerpad Solutions Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Offerpad Solutions, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Offerpad Solutions will eventually generate negative long term returns. The profitability progress is the general direction of Offerpad Solutions' change in net profit over the period of time. It can combine multiple indicators of Offerpad Solutions, 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
Net Loss-133.8 M-127.1 M
Income Tax Expense163 K215.3 K
Net Interest Income-28.8 M-30.3 M
Operating Income-104.4 M-99.2 M
Net Loss-222.9 M-211.8 M
Income Before Tax-117.1 M-111.2 M
Total Other Income Expense Net-12.6 M-13.3 M
Net Loss-117.2 M-111.4 M
Change To Netincome90.4 M94.9 M
Net Loss(4.44)(4.66)
Income Quality(2.23)(2.34)
Net Income Per E B T 1.00  1.10 

Offerpad Profitability Driver Comparison

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

Use Offerpad Solutions 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 Offerpad Solutions 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 Offerpad Solutions will appreciate offsetting losses from the drop in the long position's value.

Offerpad Solutions Pair Trading

Offerpad Solutions Pair Trading Analysis

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

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When determining whether Offerpad Solutions is a strong investment it is important to analyze Offerpad Solutions' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Offerpad Solutions' future performance. For an informed investment choice regarding Offerpad Stock, refer to the following important reports:
Check out Your Equity Center.
For information on how to trade Offerpad Stock refer to our How to Trade Offerpad Stock guide.
You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
To fully project Offerpad Solutions' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Offerpad Solutions 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 Offerpad Solutions' income statement, its balance sheet, and the statement of cash flows.
Potential Offerpad Solutions investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Offerpad Solutions investors may work on each financial statement separately, they are all related. The changes in Offerpad Solutions's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Offerpad Solutions'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.