Sika AG Current Valuation vs. Operating Margin

SIKA Stock   235.50  1.90  0.81%   
Considering the key profitability indicators obtained from Sika AG's historical financial statements, Sika AG 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 Sika AG's ability to earn profits and add value for shareholders.
For Sika AG profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sika AG to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sika AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sika AG's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sika AG 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 Sika AG's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sika AG is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sika AG'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.

Sika AG Operating Margin vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Sika AG's current stock value. Our valuation model uses many indicators to compare Sika AG value to that of its competitors to determine the firm's financial worth.
Sika AG is currently regarded number one company in current valuation category among its peers. It also is currently regarded as top stock in operating margin category among its peers . The ratio of Current Valuation to Operating Margin for Sika AG is about  253,746,798,535 . 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 Sika AG's earnings, one of the primary drivers of an investment's value.

Sika Current Valuation vs. Competition

Sika AG is currently regarded number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Specialty Chemicals industry is at this time estimated at about 163.46 Billion. Sika AG totals roughly 38.29 Billion in current valuation claiming about 23% of equities listed under Specialty Chemicals industry.

Sika Operating Margin vs. Current Valuation

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.

Sika AG

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
38.29 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.
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.

Sika AG

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.15 %
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.

Sika Operating Margin Comparison

Sika AG is currently under evaluation in operating margin category among its peers.

Sika Profitability Driver Comparison

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

Use Sika AG 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 Sika AG 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 Sika AG will appreciate offsetting losses from the drop in the long position's value.

Sika AG Pair Trading

Sika AG Pair Trading Analysis

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

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Cryptocurrency
Cryptocurrency Theme
Dynamically computed list of top cryptocurrencies sorted bymarket capitalization. The Cryptocurrency theme has 50 constituents at this time.
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Additional Tools for Sika Stock Analysis

When running Sika AG's price analysis, check to measure Sika AG's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sika AG is operating at the current time. Most of Sika AG's value examination focuses on studying past and present price action to predict the probability of Sika AG's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sika AG's price. Additionally, you may evaluate how the addition of Sika AG to your portfolios can decrease your overall portfolio volatility.