Carpenter Technology Return On Equity vs. Current Valuation
| XTY Stock | EUR 161.00 1.00 0.62% |
For Carpenter Technology profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Carpenter Technology to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Carpenter Technology utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Carpenter Technology's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Carpenter Technology over time as well as its relative position and ranking within its peers.
Carpenter |
Carpenter Technology Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Carpenter Technology's current stock value. Our valuation model uses many indicators to compare Carpenter Technology value to that of its competitors to determine the firm's financial worth. Carpenter Technology is rated below average in return on equity category among its peers. It is rated fourth in current valuation category among its peers . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Carpenter Technology's earnings, one of the primary drivers of an investment's value.Carpenter 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.
Carpenter Technology |
| = | -0.0042 |
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.
Carpenter Technology |
| = | 2.44 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.
Carpenter Current Valuation vs Competition
Carpenter Technology is rated fourth in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Metal Fabrication industry is at this time estimated at about 18.32 Billion. Carpenter Technology retains roughly 2.44 Billion in current valuation claiming about 13% of all equities under Metal Fabrication industry.
Carpenter Technology Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Carpenter Technology, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Carpenter Technology will eventually generate negative long term returns. The profitability progress is the general direction of Carpenter Technology's change in net profit over the period of time. It can combine multiple indicators of Carpenter Technology, 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.
Carpenter Technology Corporation manufactures, fabricates, and distributes specialty metals worldwide. Carpenter Technology Corporation was founded in 1889 and is headquartered in Philadelphia, Pennsylvania. Carpenter Technology operates under Metal Fabrication classification in Germany and is traded on Frankfurt Stock Exchange. It employs 4800 people.
Carpenter Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Carpenter Technology. 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 Carpenter Technology 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 Carpenter Technology's important profitability drivers and their relationship over time.
Use Carpenter Technology 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 Carpenter Technology 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 Carpenter Technology will appreciate offsetting losses from the drop in the long position's value.Carpenter Technology Pair Trading
Carpenter Technology Pair Trading Analysis
The ability to find closely correlated positions to Carpenter Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Carpenter Technology 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 Carpenter Technology - 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 Carpenter Technology to buy it.
The correlation of Carpenter Technology 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 Carpenter Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Carpenter Technology 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 Carpenter Technology 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 Carpenter Technology position
In addition to having Carpenter Technology 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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Additional Information and Resources on Investing in Carpenter Stock
When determining whether Carpenter Technology is a strong investment it is important to analyze Carpenter Technology's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Carpenter Technology's future performance. For an informed investment choice regarding Carpenter Stock, refer to the following important reports:Check out Your Current Watchlist. For more detail on how to invest in Carpenter Stock please use our How to Invest in Carpenter Technology guide.You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
To fully project Carpenter Technology's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Carpenter Technology 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 Carpenter Technology's income statement, its balance sheet, and the statement of cash flows.