Trend Micro Return On Equity vs. Current Valuation
| TMICY Stock | USD 57.17 2.62 4.80% |
For Trend Micro profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Trend Micro to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Trend Micro ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Trend Micro's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Trend Micro ADR over time as well as its relative position and ranking within its peers.
Trend |
Trend Micro ADR Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Trend Micro's current stock value. Our valuation model uses many indicators to compare Trend Micro value to that of its competitors to determine the firm's financial worth. Trend Micro ADR is rated third in return on equity category among its peers. It also is rated third in current valuation category among its peers reporting about 26,426,848,520 of Current Valuation per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Trend Micro by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Trend Micro'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.Trend Current Valuation vs. Return On Equity
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.
Trend Micro |
| = | 0.18 |
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.
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.
Trend Micro |
| = | 4.8 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.
Trend Current Valuation vs Competition
Trend Micro ADR is rated third in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is at this time estimated at about 26.99 Billion. Trend Micro retains roughly 4.8 Billion in current valuation claiming about 18% of equities under Information Technology industry.
Trend Micro Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Trend Micro, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Trend Micro will eventually generate negative long term returns. The profitability progress is the general direction of Trend Micro's change in net profit over the period of time. It can combine multiple indicators of Trend Micro, 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.
Trend Micro Incorporated develops and sells security-related software for computers and the Internet primarily in Japan. The company was incorporated in 1965 and is headquartered in Tokyo, Japan. TREND MICRO operates under SoftwareInfrastructure classification in the United States and is traded on OTC Exchange. It employs 7024 people.
Trend Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Trend Micro. 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 Trend Micro 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 Trend Micro's important profitability drivers and their relationship over time.
Use Trend Micro 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 Trend Micro 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 Trend Micro will appreciate offsetting losses from the drop in the long position's value.Trend Micro Pair Trading
Trend Micro ADR Pair Trading Analysis
The ability to find closely correlated positions to Trend Micro could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Trend Micro 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 Trend Micro - 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 Trend Micro ADR to buy it.
The correlation of Trend Micro 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 Trend Micro moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Trend Micro 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 Trend Micro 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 Trend Micro position
In addition to having Trend Micro 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 Baby Boomer Prospects Thematic Idea Now
Baby Boomer Prospects
Equities with large market capitalization that account for significant contribution to overall economic growth especially within dividend-paying instruments and stocks from healthcare and financial sectors. The Baby Boomer Prospects theme has 99 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 Baby Boomer Prospects Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for Trend Pink Sheet Analysis
When running Trend Micro's price analysis, check to measure Trend Micro'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 Trend Micro is operating at the current time. Most of Trend Micro's value examination focuses on studying past and present price action to predict the probability of Trend Micro's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Trend Micro's price. Additionally, you may evaluate how the addition of Trend Micro to your portfolios can decrease your overall portfolio volatility.