Mentor Graphics Revenue vs. Net Income
Based on Mentor Graphics' profitability indicators, Mentor Graphics Corp 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 Mentor Graphics' 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 board of governors.
Please note, there is a significant difference between Mentor Graphics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Mentor Graphics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mentor Graphics' 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 Mentor Graphics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Mentor Graphics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Mentor Graphics Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Mentor Graphics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Mentor Graphics Corp over time as well as its relative position and ranking within its peers.
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Mentor Graphics Corp Net Income vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Mentor Graphics's current stock value. Our valuation model uses many indicators to compare Mentor Graphics value to that of its competitors to determine the firm's financial worth. Mentor Graphics Corp is rated below average in revenue category among related companies. It is rated below average in net income category among related companies making up about 0.08 of Net Income per Revenue. The ratio of Revenue to Net Income for Mentor Graphics Corp is roughly 12.27 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Mentor Graphics by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Mentor Graphics' 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 Mentor Graphics' earnings, one of the primary drivers of an investment's value.Mentor Net Income vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
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| = | 1.18 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
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.
Mentor Graphics |
| = | 96.28 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.
Mentor Net Income Comparison
Mentor Graphics is currently under evaluation in net income category among related companies.
Mentor Graphics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Mentor Graphics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Mentor Graphics will eventually generate negative long term returns. The profitability progress is the general direction of Mentor Graphics' change in net profit over the period of time. It can combine multiple indicators of Mentor Graphics, 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.
Mentor Graphics Corporationration offer electronic design automation software and hardware solutions to design, analyze, and test electromechanical systems, electronic hardware, and embedded systems software worldwide.
Mentor Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Mentor Graphics. 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 Mentor Graphics 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 Mentor Graphics' important profitability drivers and their relationship over time.
Use Mentor Graphics 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 Mentor Graphics 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 Mentor Graphics will appreciate offsetting losses from the drop in the long position's value.Mentor Graphics Pair Trading
Mentor Graphics Corp Pair Trading Analysis
The ability to find closely correlated positions to Kroger could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Kroger 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 Kroger - 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 Kroger Company to buy it.
The correlation of Kroger 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 Kroger moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Kroger Company 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 Kroger 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 Mentor Graphics position
In addition to having Mentor Graphics 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 Services Thematic Idea Now
Services
Companies involved in delivering services to business or consumers across different industries and sectors. The Services theme has 30 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 Services 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 board of governors. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Consideration for investing in Mentor Stock
If you are still planning to invest in Mentor Graphics Corp 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 Mentor Graphics' history and understand the potential risks before investing.
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