Stem Holdings Revenue vs. Return On Equity
| STMH Stock | USD 0.01 0.00 0.00% |
For Stem Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Stem Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Stem Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Stem Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Stem Holdings over time as well as its relative position and ranking within its peers.
Stem |
Stem Holdings Return On Equity vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Stem Holdings's current stock value. Our valuation model uses many indicators to compare Stem Holdings value to that of its competitors to determine the firm's financial worth. Stem Holdings is rated below average in revenue category among its peers. It also is rated below average in return on equity category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Stem Holdings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Stem Holdings' OTC 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.Stem Revenue vs. Competition
Stem Holdings is rated below average in revenue category among its peers. Market size based on revenue of Drug Manufacturers—Specialty & Generic industry is at this time estimated at about 423.53 Million. Stem Holdings holds roughly 16.56 Million in revenue claiming about 4% of equities under Drug Manufacturers—Specialty & Generic industry.
Stem Return On Equity vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Stem Holdings |
| = | 16.56 M |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
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.
Stem Holdings |
| = | -0.65 |
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.
Stem Return On Equity Comparison
Stem Holdings is currently under evaluation in return on equity category among its peers.
Stem Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Stem Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Stem Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Stem Holdings' change in net profit over the period of time. It can combine multiple indicators of Stem Holdings, 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.
Stem Holdings, Inc. operates as a vertically-integrated cannabis products and technology company. The company was incorporated in 2016 and is headquartered in Boca Raton, Florida. Stem Holdings operates under Drug ManufacturersSpecialty Generic classification in the United States and is traded on OTC Exchange. It employs 450 people.
Stem Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Stem Holdings. 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 Stem Holdings 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 Stem Holdings' important profitability drivers and their relationship over time.
Use Stem Holdings 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 Stem Holdings 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 Stem Holdings will appreciate offsetting losses from the drop in the long position's value.Stem Holdings Pair Trading
Stem Holdings Pair Trading Analysis
The ability to find closely correlated positions to Stem Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Stem Holdings 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 Stem Holdings - 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 Stem Holdings to buy it.
The correlation of Stem Holdings 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 Stem Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Stem 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 Stem Holdings 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 Stem Holdings position
In addition to having Stem Holdings 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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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Healthcare theme has 61 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 Healthcare Theme or any other thematic opportunities.
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Other Information on Investing in Stem OTC Stock
To fully project Stem Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Stem 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 Stem Holdings' income statement, its balance sheet, and the statement of cash flows.