Aareal Bank Return On Equity vs. Profit Margin
| AAALY Stock | USD 34.65 0.00 0.00% |
For Aareal Bank profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Aareal Bank to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Aareal Bank AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Aareal Bank's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Aareal Bank AG over time as well as its relative position and ranking within its peers.
Aareal |
Aareal Bank AG Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Aareal Bank's current stock value. Our valuation model uses many indicators to compare Aareal Bank value to that of its competitors to determine the firm's financial worth. Aareal Bank AG is number one stock in return on equity category among related companies. It is number one stock in profit margin category among related companies fabricating about 4.28 of Profit Margin per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Aareal Bank by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Aareal Bank's Pink Sheet. 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 Aareal Bank's earnings, one of the primary drivers of an investment's value.Aareal Profit Margin vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Aareal Bank |
| = | 0.0355 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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.
Aareal Bank |
| = | 0.15 % |
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.
Aareal Profit Margin Comparison
Aareal Bank is currently under evaluation in profit margin category among related companies.
Aareal Bank Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Aareal Bank, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Aareal Bank will eventually generate negative long term returns. The profitability progress is the general direction of Aareal Bank's change in net profit over the period of time. It can combine multiple indicators of Aareal Bank, 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.
Aareal Bank AG, together with its subsidiaries, provides financing, software products, digital solutions, and payment transaction applications for the property sector and related industries in Germany, North America, Asia Pacific, and internationally. Aareal Bank AG was incorporated in 1923 and is headquartered in Wiesbaden, Germany. Aareal Bank operates under BanksRegional classification in the United States and is traded on OTC Exchange. It employs 2610 people.
Aareal Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Aareal Bank. 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 Aareal Bank 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 Aareal Bank's important profitability drivers and their relationship over time.
Use Aareal Bank 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 Aareal Bank 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 Aareal Bank will appreciate offsetting losses from the drop in the long position's value.Aareal Bank Pair Trading
Aareal Bank AG Pair Trading Analysis
The ability to find closely correlated positions to Aareal Bank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Aareal Bank 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 Aareal Bank - 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 Aareal Bank AG to buy it.
The correlation of Aareal Bank 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 Aareal Bank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Aareal Bank AG 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 Aareal Bank 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 Aareal Bank position
In addition to having Aareal Bank 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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When running Aareal Bank's price analysis, check to measure Aareal Bank'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 Aareal Bank is operating at the current time. Most of Aareal Bank's value examination focuses on studying past and present price action to predict the probability of Aareal Bank's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Aareal Bank's price. Additionally, you may evaluate how the addition of Aareal Bank to your portfolios can decrease your overall portfolio volatility.
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To fully project Aareal Bank's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Aareal Bank AG 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 Aareal Bank's income statement, its balance sheet, and the statement of cash flows.