Pro Medicus Return On Equity vs. Profit Margin
| PME Stock | 248.65 1.58 0.63% |
For Pro Medicus profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Pro Medicus to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Pro Medicus utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Pro Medicus's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Pro Medicus over time as well as its relative position and ranking within its peers.
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Pro Medicus Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Pro Medicus's current stock value. Our valuation model uses many indicators to compare Pro Medicus value to that of its competitors to determine the firm's financial worth. Pro Medicus is considered to be number one stock in return on equity category among its peers. It also is considered to be number one stock in profit margin category among its peers fabricating about 1.01 of Profit Margin per Return On Equity. 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 Pro Medicus' earnings, one of the primary drivers of an investment's value.Pro Profit Margin 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.
Pro Medicus |
| = | 0.51 |
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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Pro Medicus |
| = | 0.51 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Pro Profit Margin Comparison
Pro Medicus is currently under evaluation in profit margin category among its peers.
Pro Medicus Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Pro Medicus, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Pro Medicus will eventually generate negative long term returns. The profitability progress is the general direction of Pro Medicus' change in net profit over the period of time. It can combine multiple indicators of Pro Medicus, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -9.3 M | -8.8 M | |
| Operating Income | 112.2 M | 117.8 M | |
| Income Before Tax | 116.5 M | 122.3 M | |
| Total Other Income Expense Net | 4.3 M | 4.5 M | |
| Net Income | 82.8 M | 86.9 M | |
| Income Tax Expense | 33.7 M | 35.4 M | |
| Net Income Applicable To Common Shares | 69.7 M | 73.2 M | |
| Net Income From Continuing Ops | 82.8 M | 86.9 M | |
| Net Interest Income | 4.8 M | 5.1 M | |
| Interest Income | 4.8 M | 5.1 M | |
| Change To Netincome | -276 K | -262.2 K |
Pro Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Pro Medicus. 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 Pro Medicus 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 Pro Medicus' important profitability drivers and their relationship over time.
Use Pro Medicus 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 Pro Medicus 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 Pro Medicus will appreciate offsetting losses from the drop in the long position's value.Pro Medicus Pair Trading
Pro Medicus Pair Trading Analysis
The ability to find closely correlated positions to Pro Medicus could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Pro Medicus 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 Pro Medicus - 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 Pro Medicus to buy it.
The correlation of Pro Medicus 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 Pro Medicus moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Pro Medicus 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 Pro Medicus 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 Pro Medicus position
In addition to having Pro Medicus 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?
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Additional Tools for Pro Stock Analysis
When running Pro Medicus' price analysis, check to measure Pro Medicus' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Pro Medicus is operating at the current time. Most of Pro Medicus' value examination focuses on studying past and present price action to predict the probability of Pro Medicus' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Pro Medicus' price. Additionally, you may evaluate how the addition of Pro Medicus to your portfolios can decrease your overall portfolio volatility.