Duniec Bros Ltd Operating Margin vs. Price to Book Fundamental AnalysisDuniec Bros Ltd is one of the top stocks in price to book category among related companies. It is one of the top stocks in operating margin category among related companies reporting about 0.22 of Operating Margin per Price to Book. The ratio of Price to Book to Operating Margin for Duniec Bros Ltd is roughly 4.64 Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is accounting value of assets minus liabilities.
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.
Duniec Bros Ltd Operating Margin Comparison