Red Hat Profit Margin vs. Earnings Per Share
Based on Red Hat's profitability indicators, Red Hat 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 Red Hat's ability to earn profits and add value for shareholders.
Check out Your Equity Center 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 rate.
Please note, there is a significant difference between Red Hat's value and its price as these two are different measures arrived at by different means. Investors typically determine if Red Hat is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Red Hat'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 Red Hat profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Red Hat to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Red Hat utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Red Hat's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Red Hat over time as well as its relative position and ranking within its peers.
Red |
Red Hat Earnings Per Share vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Red Hat's current stock value. Our valuation model uses many indicators to compare Red Hat value to that of its competitors to determine the firm's financial worth. Red Hat is currently regarded as top stock in profit margin category among related companies. It is currently regarded as top stock in earnings per share category among related companies creating about 2,083 of Earnings Per Share per Profit Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Red Hat by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Red Hat'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 Red Hat's earnings, one of the primary drivers of an investment's value.Red Earnings Per Share vs. Profit Margin
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.
Red Hat |
| = | 0 % |
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.
Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
Red Hat |
| = | 2.50 X |
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.
Red Earnings Per Share Comparison
Red Hat is currently under evaluation in earnings per share category among related companies.
Red Hat Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Red Hat, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Red Hat will eventually generate negative long term returns. The profitability progress is the general direction of Red Hat's change in net profit over the period of time. It can combine multiple indicators of Red Hat, 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.
Red Hat, Inc. provides open source software solutions to develop and offer operating system, virtualization, management, middleware, cloud, and storage technologies to various enterprises worldwide. Red Hat, Inc. was founded in 1993 and is headquartered in Raleigh, North Carolina. Red Hat operates under Software - Application classification in USA and is traded on New York Stock Exchange. It employs 13360 people.
Red Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Red Hat. 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 Red Hat 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 Red Hat's important profitability drivers and their relationship over time.
Use Red Hat 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 Red Hat 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 Red Hat will appreciate offsetting losses from the drop in the long position's value.Red Hat Pair Trading
Red Hat Pair Trading Analysis
The ability to find closely correlated positions to Urban Outfitters could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Urban Outfitters 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 Urban Outfitters - 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 Urban Outfitters to buy it.
The correlation of Urban Outfitters 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 Urban Outfitters moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Urban Outfitters 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 Urban Outfitters 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 Red Hat position
In addition to having Red Hat 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 Marketing Thematic Idea Now
Marketing
Companies providing marketing and public relation (PR) services as well as news and media distribution. The Marketing theme has 40 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 Marketing Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Your Equity Center 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 rate. Note that the Red Hat information on this page should be used as a complementary analysis to other Red Hat'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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Consideration for investing in Red Stock
If you are still planning to invest in Red Hat 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 Red Hat's history and understand the potential risks before investing.
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |