STRA Hannoversche Return On Equity vs. Return On Asset
HVB Stock | EUR 9.70 0.30 3.19% |
For STRA Hannoversche profitability analysis, we use financial ratios and fundamental drivers that measure the ability of STRA Hannoversche to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well STRA Hannoversche Verkehrsbetriebe utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between STRA Hannoversche's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of STRA Hannoversche Verkehrsbetriebe over time as well as its relative position and ranking within its peers.
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STRA Hannoversche Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining STRA Hannoversche's current stock value. Our valuation model uses many indicators to compare STRA Hannoversche value to that of its competitors to determine the firm's financial worth. STRA Hannoversche Verkehrsbetriebe is one of the top stocks in return on equity category among its peers. It also is one of the top stocks 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 STRA Hannoversche's earnings, one of the primary drivers of an investment's value.STRA 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.
STRA Hannoversche |
| = | -8.74 |
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.
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| = | -0.14 |
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.
STRA Return On Asset Comparison
STRA Hannoversche is currently under evaluation in return on asset category among its peers.
STRA Hannoversche Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in STRA Hannoversche, profitability is also one of the essential criteria for including it into their portfolios because, without profit, STRA Hannoversche will eventually generate negative long term returns. The profitability progress is the general direction of STRA Hannoversche's change in net profit over the period of time. It can combine multiple indicators of STRA Hannoversche, 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.
STRA Hannoversche Verkehrsbetriebe Aktiengesellschaft operates as a local public transportation company in Germany. The company was incorporated in 1892 and is based in Hanover, Germany. UESTRA HANN is traded on Frankfurt Stock Exchange in Germany.
STRA Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on STRA Hannoversche. 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 STRA Hannoversche 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 STRA Hannoversche's important profitability drivers and their relationship over time.
Use STRA Hannoversche 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 STRA Hannoversche 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 STRA Hannoversche will appreciate offsetting losses from the drop in the long position's value.STRA Hannoversche Pair Trading
STRA Hannoversche Verkehrsbetriebe Pair Trading Analysis
The ability to find closely correlated positions to STRA Hannoversche could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace STRA Hannoversche 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 STRA Hannoversche - 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 STRA Hannoversche Verkehrsbetriebe to buy it.
The correlation of STRA Hannoversche 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 STRA Hannoversche moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if STRA Hannoversche 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 STRA Hannoversche 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 STRA Hannoversche position
In addition to having STRA Hannoversche 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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Insurance Providers
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Other Information on Investing in STRA Stock
To fully project STRA Hannoversche's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of STRA Hannoversche 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 STRA Hannoversche's income statement, its balance sheet, and the statement of cash flows.