Pratama Widya Operating Margin vs. Net Income

PTPW Stock  IDR 870.00  10.00  1.14%   
Based on the key profitability measurements obtained from Pratama Widya's financial statements, Pratama Widya Tbk may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Pratama Widya's ability to earn profits and add value for shareholders.
For Pratama Widya profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Pratama Widya to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Pratama Widya Tbk utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Pratama Widya's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Pratama Widya Tbk over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Pratama Widya's value and its price as these two are different measures arrived at by different means. Investors typically determine if Pratama Widya is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pratama Widya'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.

Pratama Widya Tbk Net Income vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Pratama Widya's current stock value. Our valuation model uses many indicators to compare Pratama Widya value to that of its competitors to determine the firm's financial worth.
Pratama Widya Tbk is considered to be number one stock in operating margin category among its peers. It also is considered to be number one stock in net income category among its peers making up about  185,619,266,904  of Net Income 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 Pratama Widya's earnings, one of the primary drivers of an investment's value.

Pratama Net Income 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.

Pratama Widya

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.28 %
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.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Pratama Widya

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
52.05 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Pratama Net Income Comparison

Pratama Widya is currently under evaluation in net income category among its peers.

Pratama Widya Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Pratama Widya, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Pratama Widya will eventually generate negative long term returns. The profitability progress is the general direction of Pratama Widya's change in net profit over the period of time. It can combine multiple indicators of Pratama Widya, 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.
PT Pratama Widya Tbk provides construction services in the areas of geotechnical engineering. The company was founded in 1981 and is headquartered in Tangerang, Indonesia. Pratama Widya operates under Engineering Construction classification in Indonesia and is traded on Jakarta Stock Exchange. It employs 6 people.

Pratama Profitability Driver Comparison

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

Use Pratama Widya 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 Pratama Widya 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 Pratama Widya will appreciate offsetting losses from the drop in the long position's value.

Pratama Widya Pair Trading

Pratama Widya Tbk Pair Trading Analysis

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

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Other Information on Investing in Pratama Stock

To fully project Pratama Widya's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Pratama Widya Tbk 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 Pratama Widya's income statement, its balance sheet, and the statement of cash flows.
Potential Pratama Widya investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Pratama Widya investors may work on each financial statement separately, they are all related. The changes in Pratama Widya's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Pratama Widya'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.