Royal Mail Net Income vs. Return On Equity
| ROYMFDelisted Stock | USD 3.84 0.00 0.00% |
For Royal Mail profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Royal Mail to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Royal Mail Plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Royal Mail's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Royal Mail Plc over time as well as its relative position and ranking within its peers.
Royal |
Royal Mail Plc Return On Equity vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Royal Mail's current stock value. Our valuation model uses many indicators to compare Royal Mail value to that of its competitors to determine the firm's financial worth. Royal Mail Plc is currently regarded as top stock in net income category among its peers. It also is currently regarded as top stock in return on equity category among its peers . The ratio of Net Income to Return On Equity for Royal Mail Plc is about 11,439,252,336 . 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 Royal Mail's earnings, one of the primary drivers of an investment's value.Royal Return On Equity vs. Net Income
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.
Royal Mail |
| = | 612 M |
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.
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.
Royal Mail |
| = | 0.0535 |
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.
Royal Return On Equity Comparison
Royal Mail is currently under evaluation in return on equity category among its peers.
Royal Mail Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Royal Mail, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Royal Mail will eventually generate negative long term returns. The profitability progress is the general direction of Royal Mail's change in net profit over the period of time. It can combine multiple indicators of Royal Mail, 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.
International Distributions Services plc, together with its subsidiaries, operates as a universal postal service provider. International Distributions Services plc was founded in 1516 and is based in London, the United Kingdom. Royal Mail is traded on OTC Exchange in the United States.
Royal Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Royal Mail. 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 Royal Mail 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 Royal Mail's important profitability drivers and their relationship over time.
Use Royal Mail 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 Royal Mail 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 Royal Mail will appreciate offsetting losses from the drop in the long position's value.Royal Mail Pair Trading
Royal Mail Plc Pair Trading Analysis
The ability to find closely correlated positions to Royal Mail could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Royal Mail 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 Royal Mail - 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 Royal Mail Plc to buy it.
The correlation of Royal Mail 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 Royal Mail moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Royal Mail Plc 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 Royal Mail 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 Royal Mail position
In addition to having Royal Mail 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 Broad Equity ETFs Thematic Idea Now
Broad Equity ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Broad Equity ETFs theme has 483 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 Broad Equity ETFs Theme or any other thematic opportunities.
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Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Consideration for investing in Royal Pink Sheet
If you are still planning to invest in Royal Mail Plc check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Royal Mail's history and understand the potential risks before investing.
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