Rubis SCA Return On Equity vs. Current Valuation

RUI Stock  EUR 21.96  0.32  1.44%   
Based on the key profitability measurements obtained from Rubis SCA's financial statements, Rubis SCA 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 Rubis SCA's ability to earn profits and add value for shareholders.
For Rubis SCA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rubis SCA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rubis SCA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rubis SCA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rubis SCA 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 Rubis SCA's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rubis SCA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rubis SCA'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.

Rubis SCA Current Valuation vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Rubis SCA's current stock value. Our valuation model uses many indicators to compare Rubis SCA value to that of its competitors to determine the firm's financial worth.
Rubis SCA is currently regarded as top stock in return on equity category among its peers. It also is currently regarded number one company in current valuation category among its peers reporting about  33,621,049,357  of Current Valuation per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Rubis SCA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Rubis SCA's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Rubis Current Valuation 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.

Rubis SCA

Return On Equity

 = 

Net Income

Total Equity

 = 
0.12
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.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Rubis SCA

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
4.13 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Rubis Current Valuation vs Competition

Rubis SCA is currently regarded number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Utilities—Regulated Gas industry is at this time estimated at about 172.17 Billion. Rubis SCA holds roughly 4.13 Billion in current valuation claiming about 2.4% of Utilities—Regulated Gas industry.

Rubis SCA Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Rubis SCA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Rubis SCA will eventually generate negative long term returns. The profitability progress is the general direction of Rubis SCA's change in net profit over the period of time. It can combine multiple indicators of Rubis SCA, 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.
Rubis, through its subsidiaries, engages in the operation of bulk liquid storage facilities and distribution of petroleum products in Europe, Africa, and the Caribbean. It serves gas stations, private individuals, industrial professionals, public works, energy distribution professionals, supermarkets, oil companies, chemical and petrochemical companies, agricultural cooperatives traders, etc., as well as services, transportation, hotel, aviation, marine, and other industries The company was founded in 1990 and is headquartered in Paris, France. RUBIS operates under Gas And Water Utilities classification in France and is traded on Paris Stock Exchange. It employs 4104 people.

Rubis Profitability Driver Comparison

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

Use Rubis SCA 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 Rubis SCA 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 Rubis SCA will appreciate offsetting losses from the drop in the long position's value.

Rubis SCA Pair Trading

Rubis SCA Pair Trading Analysis

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

In addition to having Rubis SCA 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 Outsourcing Thematic Idea Now

Outsourcing
Outsourcing Theme
Companies involved in providing outsourcing and staffing services to business across different domains. The Outsourcing theme has 32 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 Outsourcing Theme or any other thematic opportunities.
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Other Information on Investing in Rubis Stock

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