Alcatel Lucent Return On Equity vs. Profit Margin
Based on Alcatel Lucent's profitability indicators, Alcatel Lucent 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 Alcatel Lucent's ability to earn profits and add value for shareholders.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.
Please note, there is a significant difference between Alcatel Lucent's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alcatel Lucent is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alcatel Lucent'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.
For Alcatel Lucent profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alcatel Lucent to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alcatel Lucent utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alcatel Lucent's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alcatel Lucent over time as well as its relative position and ranking within its peers.
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Alcatel Lucent Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Alcatel Lucent's current stock value. Our valuation model uses many indicators to compare Alcatel Lucent value to that of its competitors to determine the firm's financial worth. Alcatel Lucent is currently under evaluation in return on equity category among related companies. It is rated below average in profit margin category among related companies . Comparative valuation analysis is a catch-all model that can be used if you cannot value Alcatel Lucent by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Alcatel Lucent's 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 Alcatel Lucent's earnings, one of the primary drivers of an investment's value.Alcatel Profit Margin 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.
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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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
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In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Alcatel Profit Margin Comparison
Alcatel Lucent is currently under evaluation in profit margin category among related companies.
Alcatel Lucent Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Alcatel Lucent, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Alcatel Lucent will eventually generate negative long term returns. The profitability progress is the general direction of Alcatel Lucent's change in net profit over the period of time. It can combine multiple indicators of Alcatel Lucent, 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.
AlcatelLucent offer Internet protocol and cloud networking, and ultra broadband access worldwide.
Alcatel Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Alcatel Lucent. 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 Alcatel Lucent 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 Alcatel Lucent's important profitability drivers and their relationship over time.
Use Alcatel Lucent 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 Alcatel Lucent 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 Alcatel Lucent will appreciate offsetting losses from the drop in the long position's value.Alcatel Lucent Pair Trading
Alcatel Lucent Pair Trading Analysis
The ability to find closely correlated positions to Cintas could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cintas 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 Cintas - 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 Cintas to buy it.
The correlation of Cintas 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 Cintas moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cintas 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 Cintas 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 Alcatel Lucent position
In addition to having Alcatel Lucent 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?
Run Broad Equity ETFs Thematic Idea Now
Broad Equity ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Broad Equity ETFs theme has 469 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 Broad Equity ETFs Theme or any other thematic opportunities.
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Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Consideration for investing in Alcatel Stock
If you are still planning to invest in Alcatel Lucent 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 Alcatel Lucent's history and understand the potential risks before investing.
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