Wex Net Income vs. Return On Asset
| WEX Stock | USD 230.64 0.16 0.07% |
Net Income | First Reported 2003-12-31 | Previous Quarter 18.4 M | Current Value 84.9 M | Quarterly Volatility 41.5 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.75 | 0.5858 |
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| Operating Profit Margin | 0.36 | 0.254 |
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For Wex profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Wex to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Wex Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Wex's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Wex Inc over time as well as its relative position and ranking within its peers.
Wex |
Is Wex's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Wex. If investors know Wex will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Wex listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.01) | Earnings Share 6.16 | Revenue Per Share 59.533 | Quarterly Revenue Growth 0.072 | Return On Assets 0.0321 |
The market value of Wex Inc is measured differently than its book value, which is the value of Wex that is recorded on the company's balance sheet. Investors also form their own opinion of Wex's value that differs from its market value or its book value, called intrinsic value, which is Wex's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Wex's market value can be influenced by many factors that don't directly affect Wex's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Wex's value and its price as these two are different measures arrived at by different means. Investors typically determine if Wex is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Wex'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.
Wex Inc Return On Asset vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Wex's current stock value. Our valuation model uses many indicators to compare Wex value to that of its competitors to determine the firm's financial worth. Wex Inc is rated fifth in net income category among related companies. It is rated fourth in return on asset category among related companies . The ratio of Net Income to Return On Asset for Wex Inc is about 8,305,295,950 . At this time, Wex's Net Income is fairly stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Wex by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Wex'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 Wex's earnings, one of the primary drivers of an investment's value.Wex Return On Asset vs. Net Income
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.
Wex |
| = | 266.6 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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Wex |
| = | 0.0321 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Wex Return On Asset Comparison
Wex is currently under evaluation in return on asset category among related companies.
Wex Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Wex, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Wex will eventually generate negative long term returns. The profitability progress is the general direction of Wex's change in net profit over the period of time. It can combine multiple indicators of Wex, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -229.2 M | -217.7 M | |
| Operating Income | 14.8 M | 14.1 M | |
| Income Before Tax | 14.8 M | 14.1 M | |
| Total Other Income Expense Net | -101.8 M | -96.7 M | |
| Net Income | 266.6 M | 279.9 M | |
| Income Tax Expense | 102.2 M | 67.5 M | |
| Net Income Applicable To Common Shares | 231.7 M | 243.2 M | |
| Net Income From Continuing Ops | 270.4 M | 283.9 M | |
| Non Operating Income Net Other | -11.1 M | -10.5 M | |
| Interest Income | 80.7 M | 126.8 M | |
| Net Interest Income | -157.2 M | -165 M | |
| Change To Netincome | 471.1 M | 494.6 M | |
| Net Income Per Share | 6.23 | 6.54 | |
| Income Quality | 3.42 | 3.59 | |
| Net Income Per E B T | 0.72 | 0.50 |
Wex Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Wex. 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 Wex 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 Wex's important profitability drivers and their relationship over time.
Use Wex 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 Wex 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 Wex will appreciate offsetting losses from the drop in the long position's value.Wex Pair Trading
Wex Inc Pair Trading Analysis
The ability to find closely correlated positions to Wex could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Wex 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 Wex - 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 Wex Inc to buy it.
The correlation of Wex 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 Wex moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Wex Inc 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 Wex 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 Wex position
In addition to having Wex 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?
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Check out Your Current Watchlist. Note that the Wex Inc information on this page should be used as a complementary analysis to other Wex'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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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When running Wex's price analysis, check to measure Wex's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Wex is operating at the current time. Most of Wex's value examination focuses on studying past and present price action to predict the probability of Wex's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Wex's price. Additionally, you may evaluate how the addition of Wex to your portfolios can decrease your overall portfolio volatility.
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To fully project Wex's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Wex Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Wex's income statement, its balance sheet, and the statement of cash flows.