Figs Return On Equity vs. Cash And Equivalents

FIGS Stock  USD 4.98  0.06  1.22%   
Based on Figs' profitability indicators, Figs' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Figs' ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.06006899
Current Value
0.0571
Quarterly Volatility
0.12865086
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Figs' Days Sales Outstanding is comparatively stable compared to the past year. Operating Cash Flow Sales Ratio is likely to gain to 0.19 in 2024, whereas EV To Sales is likely to drop 1.86 in 2024. At this time, Figs' Accumulated Other Comprehensive Income is comparatively stable compared to the past year. Net Interest Income is likely to gain to about 5.8 M in 2024, whereas Income Before Tax is likely to drop slightly above 32.5 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.780.6909
Moderately Up
Pretty Stable
Pretax Profit Margin0.06340.0748
Fairly Down
Slightly volatile
For Figs profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Figs to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Figs Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Figs's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Figs Inc over time as well as its relative position and ranking within its peers.
  

Figs' Revenue Breakdown by Earning Segment

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Is Health Care Equipment & Supplies 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 Figs. If investors know Figs 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 Figs listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.68)
Earnings Share
0.05
Revenue Per Share
3.228
Quarterly Revenue Growth
(0.01)
Return On Assets
0.0096
The market value of Figs Inc is measured differently than its book value, which is the value of Figs that is recorded on the company's balance sheet. Investors also form their own opinion of Figs' value that differs from its market value or its book value, called intrinsic value, which is Figs' 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 Figs' market value can be influenced by many factors that don't directly affect Figs' 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 Figs' value and its price as these two are different measures arrived at by different means. Investors typically determine if Figs is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Figs' 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.

Figs Inc Cash And Equivalents vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Figs's current stock value. Our valuation model uses many indicators to compare Figs value to that of its competitors to determine the firm's financial worth.
Figs Inc is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in cash and equivalents category among its peers creating about  5,951,748,252  of Cash And Equivalents per Return On Equity. At this time, Figs' Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Figs 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.

Figs Cash And Equivalents 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.

Figs

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0286
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.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Figs

Cash

 = 

Bank Deposits

+

Liquidities

 = 
170.22 M
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

Figs Cash And Equivalents Comparison

Figs is currently under evaluation in cash and equivalents category among its peers.

Figs Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Figs, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Figs will eventually generate negative long term returns. The profitability progress is the general direction of Figs' change in net profit over the period of time. It can combine multiple indicators of Figs, 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
Accumulated Other Comprehensive IncomeK5.2 K
Net Interest Income5.5 M5.8 M
Interest Income5.5 M5.8 M
Operating Income34 M30.9 M
Net Income From Continuing Ops16 M17.1 M
Income Before Tax40.8 M32.5 M
Total Other Income Expense Net6.8 M7.1 M
Net Income Applicable To Common Shares24.4 M16.9 M
Net Income22.6 M18.5 M
Income Tax Expense18.2 M13.9 M
Change To Netincome45 M32.7 M
Net Income Per Share 0.13  0.08 
Income Quality 4.46  4.24 
Net Income Per E B T 0.55  0.53 

Figs Profitability Driver Comparison

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

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

Figs Pair Trading

Figs Inc Pair Trading Analysis

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

In addition to having Figs 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.

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Run World Allocation Funds Thematic Idea Now

World Allocation Funds
World Allocation Funds Theme
Funds or Etfs investing in stocks, bonds, and cash of domestic markets as well as in markets of Canada, Japan, and Europe. The World Allocation Funds 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 World Allocation Funds Theme or any other thematic opportunities.
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Additional Tools for Figs Stock Analysis

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