Plug Power Return On Asset vs. Cash Flow From Operations
| PLUN Stock | 2.44 0.25 11.42% |
For Plug Power profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Plug Power to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Plug Power utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Plug Power's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Plug Power over time as well as its relative position and ranking within its peers.
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Plug Power Cash Flow From Operations vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Plug Power's current stock value. Our valuation model uses many indicators to compare Plug Power value to that of its competitors to determine the firm's financial worth. Plug Power is rated below average in return on asset category among its peers. It also is rated below average in cash flow from operations category among its peers . 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 Plug Power's earnings, one of the primary drivers of an investment's value.Plug Cash Flow From Operations 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.
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| = | -0.0686 |
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.
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.
Plug Power |
| = | (358.18 M) |
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.
Plug Cash Flow From Operations Comparison
Plug Power is rated below average in cash flow from operations category among its peers.
Plug Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Plug Power. 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 Plug Power 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 Plug Power's important profitability drivers and their relationship over time.
Use Plug Power 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 Plug Power 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 Plug Power will appreciate offsetting losses from the drop in the long position's value.Plug Power Pair Trading
Plug Power Pair Trading Analysis
The ability to find closely correlated positions to Plug Power could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Plug Power 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 Plug Power - 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 Plug Power to buy it.
The correlation of Plug Power 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 Plug Power moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Plug Power 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 Plug Power 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 Plug Power position
In addition to having Plug Power 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 Volatility ETFs Thematic Idea Now
Volatility ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Volatility ETFs theme has 27 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 Volatility ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Plug Stock
When determining whether Plug Power is a strong investment it is important to analyze Plug Power's 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 Plug Power's future performance. For an informed investment choice regarding Plug Stock, refer to the following important reports:Check out Your Equity Center. For information on how to trade Plug Stock refer to our How to Trade Plug Stock guide.You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
To fully project Plug Power's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Plug Power 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 Plug Power's income statement, its balance sheet, and the statement of cash flows.