Performance Food Operating Margin vs. Price To Sales
| P5F Stock | EUR 80.00 1.00 1.23% |
For Performance Food profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Performance Food to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Performance Food Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Performance Food's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Performance Food Group over time as well as its relative position and ranking within its peers.
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Performance Food Price To Sales vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Performance Food's current stock value. Our valuation model uses many indicators to compare Performance Food value to that of its competitors to determine the firm's financial worth. Performance Food Group is rated below average in operating margin category among its peers. It is rated below average in price to sales category among its peers fabricating about 16.38 of Price To Sales per Operating Margin. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Performance Food's earnings, one of the primary drivers of an investment's value.Performance Price To Sales vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
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A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
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The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Performance Price To Sales Comparison
Performance Food is rated below average in price to sales category among its peers.
Performance Food Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Performance Food, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Performance Food will eventually generate negative long term returns. The profitability progress is the general direction of Performance Food's change in net profit over the period of time. It can combine multiple indicators of Performance Food, 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.
Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products in the United States. Performance Food Group Company was founded in 2002 and is headquartered in Richmond, Virginia. Performance Food operates under Food Distribution classification in Germany and is traded on Frankfurt Stock Exchange. It employs 15000 people.
Performance Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Performance Food. 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 Performance Food 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 Performance Food's important profitability drivers and their relationship over time.
Use Performance Food 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 Performance Food 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 Performance Food will appreciate offsetting losses from the drop in the long position's value.Performance Food Pair Trading
Performance Food Group Pair Trading Analysis
The ability to find closely correlated positions to Performance Food could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Performance Food 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 Performance Food - 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 Performance Food Group to buy it.
The correlation of Performance Food 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 Performance Food moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Performance Food 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 Performance Food 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 Performance Food position
In addition to having Performance Food 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 Food Products Thematic Idea Now
Food Products
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Food Products 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 Food Products Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Performance Stock
When determining whether Performance Food offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Performance Food'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 Performance Food Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Performance Food Group Stock:Check out Your Equity Center. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
To fully project Performance Food's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Performance Food 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 Performance Food's income statement, its balance sheet, and the statement of cash flows.