Ponce Financial Operating Margin vs. Return On Asset

PDLB Stock  USD 13.17  0.04  0.30%   
Taking into consideration Ponce Financial's profitability measurements, Ponce Financial Group is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Ponce Financial's ability to earn profits and add value for shareholders.

Ponce Financial Operating Profit Margin

0.0992

At present, Ponce Financial's EV To Sales is projected to increase slightly based on the last few years of reporting. The current year's Sales General And Administrative To Revenue is expected to grow to 0.52, whereas Price To Sales Ratio is forecasted to decline to 2.86. At present, Ponce Financial's Income Before Tax is projected to decrease significantly based on the last few years of reporting. The current year's Net Income is expected to grow to about 3.5 M, whereas Accumulated Other Comprehensive Income is projected to grow to (27.2 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.740.9352
Significantly Down
Slightly volatile
For Ponce Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ponce Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ponce Financial Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ponce Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ponce Financial Group over time as well as its relative position and ranking within its peers.
  

Ponce Financial's Revenue Breakdown by Earning Segment

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Is Regional Banks 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 Ponce Financial. If investors know Ponce 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 Ponce Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.18)
Earnings Share
0.37
Revenue Per Share
3.555
Quarterly Revenue Growth
(0.10)
Return On Assets
0.003
The market value of Ponce Financial Group is measured differently than its book value, which is the value of Ponce that is recorded on the company's balance sheet. Investors also form their own opinion of Ponce Financial's value that differs from its market value or its book value, called intrinsic value, which is Ponce Financial's 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 Ponce Financial's market value can be influenced by many factors that don't directly affect Ponce Financial's 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 Ponce Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ponce Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ponce Financial'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.

Ponce Financial Group Return On Asset vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Ponce Financial's current stock value. Our valuation model uses many indicators to compare Ponce Financial value to that of its competitors to determine the firm's financial worth.
Ponce Financial Group is rated below average in operating margin category among its peers. It is rated below average in return on asset category among its peers reporting about  0.02  of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Ponce Financial Group is roughly  52.80 . At present, Ponce Financial's Operating Profit Margin is projected to slightly decrease based on the last few years of reporting. 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 Ponce Financial's earnings, one of the primary drivers of an investment's value.

Ponce Return On Asset 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.

Ponce Financial

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.16 %
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.
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.

Ponce Financial

Return On Asset

 = 

Net Income

Total Assets

 = 
0.003
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.

Ponce Return On Asset Comparison

Ponce Financial is currently under evaluation in return on asset category among its peers.

Ponce Financial Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Ponce Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ponce Financial will eventually generate negative long term returns. The profitability progress is the general direction of Ponce Financial's change in net profit over the period of time. It can combine multiple indicators of Ponce Financial, 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-28.6 M-27.2 M
Net Interest Income64.2 M46.7 M
Interest Income115.8 M61.3 M
Income Before Tax5.9 M6.1 M
Net Loss-27 M-25.7 M
Net Income3.4 M3.5 M
Operating Income4.4 M3.2 M
Net Loss-6.4 M-6.1 M
Total Other Income Expense Net1.5 M1.6 M
Income Tax Expense2.5 M2.6 M
Change To Netincome43.2 M45.4 M
Net Income Per Share 0.15  0.15 
Income Quality 1.94  2.03 
Net Income Per E B T 0.57  0.87 

Ponce Profitability Driver Comparison

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

Use Ponce Financial 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 Ponce Financial 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 Ponce Financial will appreciate offsetting losses from the drop in the long position's value.

Ponce Financial Pair Trading

Ponce Financial Group Pair Trading Analysis

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

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When determining whether Ponce Financial Group offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ponce Financial'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 Ponce Financial Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ponce Financial Group Stock:
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You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
To fully project Ponce Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ponce Financial Group 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 Ponce Financial's income statement, its balance sheet, and the statement of cash flows.
Potential Ponce Financial investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Ponce Financial investors may work on each financial statement separately, they are all related. The changes in Ponce Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ponce Financial'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.