Reconnaissance Energy Gross Profit vs. EBITDA

RECAF Stock  USD 0.72  0.01  1.37%   
Based on the key profitability measurements obtained from Reconnaissance Energy's financial statements, Reconnaissance Energy Africa 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 Reconnaissance Energy's ability to earn profits and add value for shareholders.
For Reconnaissance Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Reconnaissance Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Reconnaissance Energy Africa utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Reconnaissance Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Reconnaissance Energy Africa 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 Reconnaissance Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Reconnaissance Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Reconnaissance Energy'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.

Reconnaissance Energy EBITDA vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Reconnaissance Energy's current stock value. Our valuation model uses many indicators to compare Reconnaissance Energy value to that of its competitors to determine the firm's financial worth.
Reconnaissance Energy Africa is currently regarded as top stock in gross profit category among its peers. It is rated second in ebitda 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 Reconnaissance Energy's earnings, one of the primary drivers of an investment's value.

Reconnaissance EBITDA vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Reconnaissance Energy

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
195.99 K
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Reconnaissance Energy

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
(259.53 M)
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Reconnaissance EBITDA Comparison

100%
Reconnaissance Energy is currently under evaluation in ebitda category among its peers.

Reconnaissance Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Reconnaissance Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Reconnaissance Energy will eventually generate negative long term returns. The profitability progress is the general direction of Reconnaissance Energy's change in net profit over the period of time. It can combine multiple indicators of Reconnaissance Energy, 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.
Reconnaissance Energy Africa Ltd., a junior oil and gas company, engages in exploration and development of oil and gas potential in Namibia and Botswana. It holds a 90 percent interest in a petroleum exploration license that covers an area of approximately 25,341.33 km2 located in Namibia and 100 percent working interest in a petroleum license, which covers an area of 8,990 square km2 located in northwestern Botswana. Reconnaissance Energy is traded on OTC Exchange in the United States.

Reconnaissance Profitability Driver Comparison

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

Use Reconnaissance Energy 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 Reconnaissance Energy 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 Reconnaissance Energy will appreciate offsetting losses from the drop in the long position's value.

Reconnaissance Energy Pair Trading

Reconnaissance Energy Africa Pair Trading Analysis

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

In addition to having Reconnaissance Energy 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.

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Other Information on Investing in Reconnaissance OTC Stock

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