Thyssenkrupp EBITDA vs. Return On Equity
| TKAMY Stock | USD 4.15 0.19 4.38% |
For Thyssenkrupp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Thyssenkrupp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Thyssenkrupp AG ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Thyssenkrupp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Thyssenkrupp AG ADR over time as well as its relative position and ranking within its peers.
Thyssenkrupp |
Thyssenkrupp AG ADR Return On Equity vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Thyssenkrupp's current stock value. Our valuation model uses many indicators to compare Thyssenkrupp value to that of its competitors to determine the firm's financial worth. Thyssenkrupp AG ADR is currently regarded as top stock in ebitda category among its peers. It also is currently regarded as top stock in return on equity category among its peers . The ratio of EBITDA to Return On Equity for Thyssenkrupp AG ADR is about 16,536,430,834 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Thyssenkrupp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Thyssenkrupp'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.Thyssenkrupp Return On Equity vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Thyssenkrupp |
| = | 1.57 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
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.
Thyssenkrupp |
| = | 0.0947 |
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.
Thyssenkrupp Return On Equity Comparison
Thyssenkrupp is currently under evaluation in return on equity category among its peers.
Thyssenkrupp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Thyssenkrupp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Thyssenkrupp will eventually generate negative long term returns. The profitability progress is the general direction of Thyssenkrupp's change in net profit over the period of time. It can combine multiple indicators of Thyssenkrupp, 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.
thyssenkrupp AG operates in the areas of automotive technology, industrial components, marine systems, steel, and materials services in Germany, the United States, China, and internationally. Its Steel Europe segment provides flat carbon steel products, intelligent material solutions, and finished parts. thyssenkrupp AG was founded in 1811 and is headquartered in Essen, Germany. Thyssenkrupp operates under Metal Fabrication classification in the United States and is traded on OTC Exchange. It employs 97152 people.
Thyssenkrupp Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Thyssenkrupp. 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 Thyssenkrupp 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 Thyssenkrupp's important profitability drivers and their relationship over time.
Use Thyssenkrupp 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 Thyssenkrupp 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 Thyssenkrupp will appreciate offsetting losses from the drop in the long position's value.Thyssenkrupp Pair Trading
Thyssenkrupp AG ADR Pair Trading Analysis
The ability to find closely correlated positions to Thyssenkrupp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Thyssenkrupp 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 Thyssenkrupp - 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 Thyssenkrupp AG ADR to buy it.
The correlation of Thyssenkrupp 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 Thyssenkrupp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Thyssenkrupp AG ADR 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 Thyssenkrupp 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 Thyssenkrupp position
In addition to having Thyssenkrupp 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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Cash Cows
Entities with stable and reliable earnings or profits, which allows them to pay consistent dividends to their shareholders. The Cash Cows theme has 25 constituents at this time.
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Additional Tools for Thyssenkrupp Pink Sheet Analysis
When running Thyssenkrupp's price analysis, check to measure Thyssenkrupp'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 Thyssenkrupp is operating at the current time. Most of Thyssenkrupp's value examination focuses on studying past and present price action to predict the probability of Thyssenkrupp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Thyssenkrupp's price. Additionally, you may evaluate how the addition of Thyssenkrupp to your portfolios can decrease your overall portfolio volatility.