McEwen Mining Profitability Analysis

0JZT Stock   8.34  0.38  4.36%   
Considering the key profitability indicators obtained from McEwen Mining's historical financial statements, McEwen Mining may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess McEwen Mining's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2012-12-31
Previous Quarter
-13 M
Current Value
-2.1 M
Quarterly Volatility
45.5 M
 
Yuan Drop
 
Covid
For McEwen Mining profitability analysis, we use financial ratios and fundamental drivers that measure the ability of McEwen Mining to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well McEwen Mining utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between McEwen Mining's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of McEwen Mining over time as well as its relative position and ranking within its peers.
  
Check out Trending Equities.
For more information on how to buy McEwen Stock please use our How to Invest in McEwen Mining guide.
Please note, there is a significant difference between McEwen Mining's value and its price as these two are different measures arrived at by different means. Investors typically determine if McEwen Mining is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, McEwen Mining's 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.

McEwen Mining Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining McEwen Mining's current stock value. Our valuation model uses many indicators to compare McEwen Mining value to that of its competitors to determine the firm's financial worth.
McEwen Mining is number one stock in return on equity category among its peers. It also is number one stock in return on asset 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 McEwen Mining's earnings, one of the primary drivers of an investment's value.

McEwen Return On Asset 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.

McEwen Mining

Return On Equity

 = 

Net Income

Total Equity

 = 
0.23
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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

McEwen Mining

Return On Asset

 = 

Net Income

Total Assets

 = 
-8.0E-4
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

McEwen Return On Asset Comparison

McEwen Mining is currently under evaluation in return on asset category among its peers.

McEwen Mining Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in McEwen Mining, profitability is also one of the essential criteria for including it into their portfolios because, without profit, McEwen Mining will eventually generate negative long term returns. The profitability progress is the general direction of McEwen Mining's change in net profit over the period of time. It can combine multiple indicators of McEwen Mining, 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.
Last ReportedProjected for Next Year
Operating Income-162.1 M-154 M
Income Before Tax67 M70.4 M
Total Other Income Expense Net229.1 M240.6 M
Net Income55.3 M58.1 M
Income Tax Expense33.9 M35.6 M
Interest IncomeM8.4 M
Net Loss-73 M-76.6 M
Change To Netincome-1.9 M-1.8 M

McEwen Profitability Driver Comparison

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

Use McEwen Mining 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 McEwen Mining 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 McEwen Mining will appreciate offsetting losses from the drop in the long position's value.

McEwen Mining Pair Trading

McEwen Mining Pair Trading Analysis

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

In addition to having McEwen Mining 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 Electronics Thematic Idea Now

Electronics
Electronics Theme
Companies manufacturing electronic appliances and goods. The Electronics theme has 39 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 Electronics Theme or any other thematic opportunities.
View All  Next Launch

Additional Tools for McEwen Stock Analysis

When running McEwen Mining's price analysis, check to measure McEwen Mining'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 McEwen Mining is operating at the current time. Most of McEwen Mining's value examination focuses on studying past and present price action to predict the probability of McEwen Mining's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move McEwen Mining's price. Additionally, you may evaluate how the addition of McEwen Mining to your portfolios can decrease your overall portfolio volatility.