Libbey Current Valuation vs. Retained Earnings
Based on the key profitability measurements obtained from Libbey's financial statements, Libbey Inc 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 Libbey's ability to earn profits and add value for shareholders.
Check out Correlation Analysis 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 labor statistics.
Please note, there is a significant difference between Libbey's value and its price as these two are different measures arrived at by different means. Investors typically determine if Libbey is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Libbey'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 Libbey profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Libbey to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Libbey Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Libbey's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Libbey Inc over time as well as its relative position and ranking within its peers.
Libbey |
Libbey Inc Retained Earnings vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Libbey's current stock value. Our valuation model uses many indicators to compare Libbey value to that of its competitors to determine the firm's financial worth. Libbey Inc is considered the number one company in current valuation category among related companies. It is currently regarded as number one stock in retained earnings category among related companies . Comparative valuation analysis is a catch-all model that can be used if you cannot value Libbey by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Libbey'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 Libbey's earnings, one of the primary drivers of an investment's value.Libbey Current Valuation vs. Competition
Libbey Inc is considered the number one company in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Furnishings, Fixtures & Appliances industry is now estimated at about 28.7 Billion. Libbey claims roughly 440.27 Million in current valuation contributing just under 2% to equities under Furnishings, Fixtures & Appliances industry.
Libbey Retained Earnings vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Libbey |
| = | 440.27 M |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
Libbey |
| = | (259.44 M) |
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.
Libbey Retained Earnings Comparison
Libbey is currently under evaluation in retained earnings category among related companies.
Libbey Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Libbey, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Libbey will eventually generate negative long term returns. The profitability progress is the general direction of Libbey's change in net profit over the period of time. It can combine multiple indicators of Libbey, 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.
Libbey Inc. designs, produces, and sells tableware and other products in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. On June 1, 2020, Libbey Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Libbey operates under Furnishings, Fixtures Appliances classification in the United States and is traded on American Stock Exchange. It employs 5872 people.
Libbey Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Libbey. 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 Libbey 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 Libbey's important profitability drivers and their relationship over time.
Use Libbey 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 Libbey 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 Libbey will appreciate offsetting losses from the drop in the long position's value.Libbey Pair Trading
Libbey Inc Pair Trading Analysis
The ability to find closely correlated positions to Microsoft could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microsoft 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 Microsoft - 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 Microsoft to buy it.
The correlation of Microsoft 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 Microsoft moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microsoft 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 Microsoft 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 Libbey position
In addition to having Libbey 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 Single Stock ETFs Thematic Idea Now
Single Stock ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Single Stock ETFs theme has 55 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 Single Stock ETFs Theme or any other thematic opportunities.
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Check out Correlation Analysis 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 labor statistics. Note that the Libbey Inc information on this page should be used as a complementary analysis to other Libbey's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Consideration for investing in Libbey Stock
If you are still planning to invest in Libbey Inc 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 Libbey's history and understand the potential risks before investing.
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