Basic Materials Five Year Return vs. Price To Book
Based on Basic Materials' profitability indicators, Basic Materials Fund may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Basic Materials' ability to earn profits and add value for shareholders.
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as various price indices.
Please note, there is a significant difference between Basic Materials' value and its price as these two are different measures arrived at by different means. Investors typically determine if Basic Materials is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Basic Materials' 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.
For Basic Materials profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Basic Materials to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Basic Materials Fund utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Basic Materials's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Basic Materials Fund over time as well as its relative position and ranking within its peers.
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Basic Materials Price To Book vs. Five Year Return Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Basic Materials's current stock value. Our valuation model uses many indicators to compare Basic Materials value to that of its competitors to determine the firm's financial worth. Basic Materials Fund is rated top fund in five year return among similar funds. It also is rated top fund in price to book among similar funds fabricating about 0.27 of Price To Book per Five Year Return. The ratio of Five Year Return to Price To Book for Basic Materials Fund is roughly 3.65 . 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 Basic Materials' earnings, one of the primary drivers of an investment's value.Basic Price To Book vs. Five Year Return
Five Year Return is considered one of the best measures to evaluate fund performance, especially from the mid and long term perspective. It shows the total annualized return generated from holding equity for the last five years and represents capital appreciation of the investment, including all dividends, losses, and capital gains distributions.
Basic Materials |
| = | 7.91 % |
Although Five Year Returns can give a sense of overall investment potential, it is recommended to compare equity performance with similar assets for the same five year time interval. Similarly, comparing overall investment performance over the last five years with the appropriate market index is a great way to determine how this equity instrument will perform during unforeseen market fluctuations.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Basic Materials |
| = | 2.17 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Basic Price To Book Comparison
Basic Materials is currently under evaluation in price to book among similar funds.
Basic Materials Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Basic Materials, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Basic Materials will eventually generate negative long term returns. The profitability progress is the general direction of Basic Materials' change in net profit over the period of time. It can combine multiple indicators of Basic Materials, 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.
The fund invests substantially all of its net assets in equity securities of Basic Materials Companies that are traded in the United States and in derivatives. Rydex Series is traded on NASDAQ Exchange in the United States.
Basic Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Basic Materials. 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 Basic Materials 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 Basic Materials' important profitability drivers and their relationship over time.
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Our tools can tell you how much better you can do entering a position in Basic Materials without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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Use Investing Themes to Complement your Basic Materials position
In addition to having Basic Materials 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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Restaurants
Entities that are involved in restaurant business, as well as coffee shop chains and other eateries. The Restaurants theme has 40 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 Restaurants Theme or any other thematic opportunities.
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Other Information on Investing in Basic Mutual Fund
To fully project Basic Materials' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Basic Materials 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 Basic Materials' income statement, its balance sheet, and the statement of cash flows.
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