AEP Industries Net Income vs. Current Ratio
Based on AEP Industries' profitability indicators, AEP Industries may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in May. Profitability indicators assess AEP Industries' ability to earn profits and add value for shareholders.
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Please note, there is a significant difference between AEP Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine if AEP Industries is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AEP Industries' 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.
For AEP Industries profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AEP Industries to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AEP Industries utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AEP Industries's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AEP Industries over time as well as its relative position and ranking within its peers.
AEP |
AEP Industries Current Ratio vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining AEP Industries's current stock value. Our valuation model uses many indicators to compare AEP Industries value to that of its competitors to determine the firm's financial worth. AEP Industries is rated third in net income category among related companies. It is number one stock in current ratio category among related companies . The ratio of Net Income to Current Ratio for AEP Industries is about 12,800,889 . Comparative valuation analysis is a catch-all model that can be used if you cannot value AEP Industries by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for AEP Industries' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. 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 AEP Industries' earnings, one of the primary drivers of an investment's value.AEP Current Ratio 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.
AEP Industries |
| = | 28.8 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.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
AEP Industries |
| = | 2.25 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
AEP Current Ratio Comparison
AEP Industries is currently under evaluation in current ratio category among related companies.
AEP Industries Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in AEP Industries, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AEP Industries will eventually generate negative long term returns. The profitability progress is the general direction of AEP Industries' change in net profit over the period of time. It can combine multiple indicators of AEP Industries, 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.
AEP Industries Inc. manufactures and markets flexible plastic packaging films in North America.
AEP Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on AEP Industries. 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 AEP Industries 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 AEP Industries' important profitability drivers and their relationship over time.
Use AEP Industries 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 AEP Industries 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 AEP Industries will appreciate offsetting losses from the drop in the long position's value.AEP Industries Pair Trading
AEP Industries Pair Trading Analysis
The ability to find closely correlated positions to Global X could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Global X 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 Global X - 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 Global X Funds to buy it.
The correlation of Global X 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 Global X moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Global X Funds 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 Global X 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 AEP Industries position
In addition to having AEP Industries 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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Other Consideration for investing in AEP Stock
If you are still planning to invest in AEP Industries check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the AEP Industries' history and understand the potential risks before investing.
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