Southern Michigan Price To Earning vs. Price To Sales
| SOMC Stock | USD 19.25 0.25 1.28% |
For Southern Michigan profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Southern Michigan to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Southern Michigan Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Southern Michigan's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Southern Michigan Bancorp over time as well as its relative position and ranking within its peers.
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Southern Michigan Bancorp Price To Sales vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Southern Michigan's current stock value. Our valuation model uses many indicators to compare Southern Michigan value to that of its competitors to determine the firm's financial worth. Southern Michigan Bancorp is rated second in price to earning category among its peers. It also is rated second in price to sales category among its peers fabricating about 0.33 of Price To Sales per Price To Earning. The ratio of Price To Earning to Price To Sales for Southern Michigan Bancorp is roughly 3.01 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Southern Michigan by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Southern Michigan's Pink Sheet. 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.Southern Price To Sales vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Southern Michigan |
| = | 6.23 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Southern Michigan |
| = | 2.07 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Southern Price To Sales Comparison
Southern Michigan is currently under evaluation in price to sales category among its peers.
Southern Michigan Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Southern Michigan, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Southern Michigan will eventually generate negative long term returns. The profitability progress is the general direction of Southern Michigan's change in net profit over the period of time. It can combine multiple indicators of Southern Michigan, 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.
Southern Michigan Bancorp, Inc. operates as the bank holding company for Southern Michigan Bank Trust that provides a range of commercial banking services to individuals, businesses, institutions, and governmental agencies primarily in the southwest Michigan communities. The company was founded in 1871 and is based in Coldwater, Michigan. Southern Michigan operates under BanksRegional classification in the United States and is traded on OTC Exchange.
Southern Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Southern Michigan. 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 Southern Michigan 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 Southern Michigan's important profitability drivers and their relationship over time.
Use Southern Michigan 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 Southern Michigan 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 Southern Michigan will appreciate offsetting losses from the drop in the long position's value.Southern Michigan Pair Trading
Southern Michigan Bancorp Pair Trading Analysis
The ability to find closely correlated positions to Southern Michigan could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Southern Michigan 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 Southern Michigan - 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 Southern Michigan Bancorp to buy it.
The correlation of Southern Michigan 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 Southern Michigan moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Southern Michigan Bancorp 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 Southern Michigan 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 Southern Michigan position
In addition to having Southern Michigan 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 Railroads Thematic Idea Now
Railroads
Companies involved in manufacturing and maintenance of freight railroads and passenger trains as well as providing railroad services to public. The Railroads theme has 46 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 Railroads Theme or any other thematic opportunities.
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Other Information on Investing in Southern Pink Sheet
To fully project Southern Michigan's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Southern Michigan Bancorp 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 Southern Michigan's income statement, its balance sheet, and the statement of cash flows.