CommScope Holding Return On Asset vs. Operating Margin

COMM Stock  USD 14.77  0.26  1.79%   
Considering the key profitability indicators obtained from CommScope Holding's historical financial statements, CommScope Holding Co may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in September. Profitability indicators assess CommScope Holding's ability to earn profits and add value for shareholders.
For CommScope Holding profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CommScope Holding to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CommScope Holding Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CommScope Holding's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CommScope Holding Co over time as well as its relative position and ranking within its peers.
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Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CommScope Holding. If investors know CommScope will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CommScope Holding listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of CommScope Holding is measured differently than its book value, which is the value of CommScope that is recorded on the company's balance sheet. Investors also form their own opinion of CommScope Holding's value that differs from its market value or its book value, called intrinsic value, which is CommScope Holding's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CommScope Holding's market value can be influenced by many factors that don't directly affect CommScope Holding's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CommScope Holding's value and its price as these two are different measures arrived at by different means. Investors typically determine if CommScope Holding is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CommScope Holding'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.

CommScope Holding Operating Margin vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining CommScope Holding's current stock value. Our valuation model uses many indicators to compare CommScope Holding value to that of its competitors to determine the firm's financial worth.
CommScope Holding Co is rated third in return on asset category among its peers. It is number one stock in operating margin category among its peers reporting about  3.62  of Operating Margin per Return On Asset. Comparative valuation analysis is a catch-all technique that is used if you cannot value CommScope Holding by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

CommScope Operating Margin vs. Return On Asset

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.

CommScope Holding

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0516
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.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

CommScope Holding

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.19 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

CommScope Operating Margin Comparison

CommScope Holding is currently under evaluation in operating margin category among its peers.

CommScope Holding Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in CommScope Holding, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CommScope Holding will eventually generate negative long term returns. The profitability progress is the general direction of CommScope Holding's change in net profit over the period of time. It can combine multiple indicators of CommScope Holding, 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.
CommScope Holding Company, Inc. provides infrastructure solutions for communications and entertainment networks. CommScope Holding Company, Inc. was founded in 1976 and is headquartered in Hickory, North Carolina. Commscope Holding operates under Communication Equipment classification in the United States and is traded on NASDAQ Exchange. It employs 30000 people.

CommScope Profitability Driver Comparison

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

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When determining whether CommScope Holding is a strong investment it is important to analyze CommScope Holding'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 CommScope Holding's future performance. For an informed investment choice regarding CommScope Stock, refer to the following important reports:
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You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
To fully project CommScope Holding's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CommScope Holding 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 CommScope Holding's income statement, its balance sheet, and the statement of cash flows.
Potential CommScope Holding investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although CommScope Holding investors may work on each financial statement separately, they are all related. The changes in CommScope Holding's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on CommScope Holding's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.