Thermon Group Net Income vs. Return On Asset
| THR Stock | USD 26.90 0.08 0.30% |
Net Income | First Reported 2008-06-30 | Previous Quarter 10.1 M | Current Value 8.5 M | Quarterly Volatility 4.9 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.48 | 0.4072 |
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| Net Profit Margin | 0.0882 | 0.1043 |
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| Return On Assets | 0.0617 | 0.0672 |
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| Return On Equity | 0.17 | 0.1086 |
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For Thermon Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Thermon Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Thermon Group Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Thermon Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Thermon Group Holdings over time as well as its relative position and ranking within its peers.
Thermon |
Is Electrical Components & 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 Thermon Group. If investors know Thermon 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 Thermon Group 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 (0.22) | Earnings Share 1.44 | Revenue Per Share 14.914 | Quarterly Revenue Growth 0.077 | Return On Assets 0.0687 |
The market value of Thermon Group Holdings is measured differently than its book value, which is the value of Thermon that is recorded on the company's balance sheet. Investors also form their own opinion of Thermon Group's value that differs from its market value or its book value, called intrinsic value, which is Thermon Group'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 Thermon Group's market value can be influenced by many factors that don't directly affect Thermon Group'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 Thermon Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if Thermon Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Thermon Group'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.
Thermon Group Holdings Return On Asset vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Thermon Group's current stock value. Our valuation model uses many indicators to compare Thermon Group value to that of its competitors to determine the firm's financial worth. Thermon Group Holdings is rated below average in net income category among its peers. It is rated below average in return on asset category among its peers . The ratio of Net Income to Return On Asset for Thermon Group Holdings is about 750,917,031 . At this time, Thermon Group's Net Income is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Thermon Group 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.Thermon Return On Asset vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Thermon Group |
| = | 51.59 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
Thermon Group |
| = | 0.0687 |
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.
Thermon Return On Asset Comparison
Thermon Group is currently under evaluation in return on asset category among its peers.
Thermon Group Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Thermon Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Thermon Group will eventually generate negative long term returns. The profitability progress is the general direction of Thermon Group's change in net profit over the period of time. It can combine multiple indicators of Thermon Group, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -57.2 M | -54.4 M | |
| Operating Income | 77.9 M | 81.8 M | |
| Income Before Tax | 67.7 M | 35.4 M | |
| Total Other Income Expense Net | -10.2 M | -10.7 M | |
| Net Income Applicable To Common Shares | 30.3 M | 17.1 M | |
| Net Income | 51.6 M | 54.2 M | |
| Income Tax Expense | 16.1 M | 16.9 M | |
| Net Income From Continuing Ops | 51.6 M | 26.1 M | |
| Non Operating Income Net Other | -98.9 K | -103.8 K | |
| Interest Income | 6.8 M | 7.1 M | |
| Net Interest Income | -8.8 M | -9.3 M | |
| Change To Netincome | 892.4 K | 1.2 M | |
| Net Income Per Share | 1.53 | 1.61 | |
| Income Quality | 1.28 | 2.55 | |
| Net Income Per E B T | 0.76 | 0.56 |
Thermon Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Thermon Group. 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 Thermon Group 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 Thermon Group's important profitability drivers and their relationship over time.
Use Thermon Group 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 Thermon Group 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 Thermon Group will appreciate offsetting losses from the drop in the long position's value.Thermon Group Pair Trading
Thermon Group Holdings Pair Trading Analysis
The ability to find closely correlated positions to Thermon Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Thermon Group 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 Thermon Group - 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 Thermon Group Holdings to buy it.
The correlation of Thermon Group 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 Thermon Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Thermon Group Holdings 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 Thermon Group 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 Thermon Group position
In addition to having Thermon Group 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 Tools for Thermon Stock Analysis
When running Thermon Group's price analysis, check to measure Thermon Group'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 Thermon Group is operating at the current time. Most of Thermon Group's value examination focuses on studying past and present price action to predict the probability of Thermon Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Thermon Group's price. Additionally, you may evaluate how the addition of Thermon Group to your portfolios can decrease your overall portfolio volatility.