Steel Partners Operating Margin vs. Debt To Equity

SPLP-PA Preferred Stock  USD 24.28  0.04  0.16%   
Based on Steel Partners' profitability indicators, Steel Partners Holdings may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Steel Partners' ability to earn profits and add value for shareholders.
For Steel Partners profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Steel Partners to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Steel Partners Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Steel Partners's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Steel Partners Holdings 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 Steel Partners' value and its price as these two are different measures arrived at by different means. Investors typically determine if Steel Partners is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Steel Partners' 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.

Steel Partners Holdings Debt To Equity vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Steel Partners's current stock value. Our valuation model uses many indicators to compare Steel Partners value to that of its competitors to determine the firm's financial worth.
Steel Partners Holdings is currently regarded as top stock in operating margin category among its peers. It also is currently regarded as top stock in debt to equity category among its peers fabricating about  1,218  of Debt To Equity per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Steel Partners by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Steel Partners' Preferred 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.

Steel Debt To Equity vs. Operating Margin

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.

Steel Partners

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.11 %
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.
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.

Steel Partners

D/E

 = 

Total Debt

Total Equity

 = 
135.80 %
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.

Steel Debt To Equity Comparison

Steel Partners is currently under evaluation in debt to equity category among its peers.

Steel Partners Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Steel Partners, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Steel Partners will eventually generate negative long term returns. The profitability progress is the general direction of Steel Partners' change in net profit over the period of time. It can combine multiple indicators of Steel Partners, 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.
Steel Partners Holdings L.P., through its subsidiaries, engages in industrial products, energy, defense, supply chain management, logistics, banking, and youth sports businesses worldwide. The company was founded in 1990 and is based in New York, New York. Steel Partners operates under Conglomerates classification in USA and is traded on New York Stock Exchange. It employs 5300 people.

Steel Profitability Driver Comparison

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

Use Steel Partners 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 Steel Partners 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 Steel Partners will appreciate offsetting losses from the drop in the long position's value.

Steel Partners Pair Trading

Steel Partners Holdings Pair Trading Analysis

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

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Other Information on Investing in Steel Preferred Stock

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