C3 Ai Profitability Analysis

AI Stock  USD 26.78  0.32  1.21%   
Considering the key profitability indicators obtained from C3 Ai's historical financial statements, C3 Ai Inc may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in August. Profitability indicators assess C3 Ai's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2019-07-31
Previous Quarter
-72.6 M
Current Value
-72.9 M
Quarterly Volatility
25.9 M
 
Covid
As of now, C3 Ai's Days Sales Outstanding is decreasing as compared to previous years. The C3 Ai's current Days Of Sales Outstanding is estimated to increase to 166.49, while Price To Sales Ratio is projected to decrease to 8.23. As of now, C3 Ai's Non Operating Income Net Other is increasing as compared to previous years. The C3 Ai's current Change To Netincome is estimated to increase to about 256.3 M, while Accumulated Other Comprehensive Income is projected to decrease to (591.1 K).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.770.5749
Significantly Up
Slightly volatile
For C3 Ai profitability analysis, we use financial ratios and fundamental drivers that measure the ability of C3 Ai to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well C3 Ai Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between C3 Ai's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of C3 Ai Inc over time as well as its relative position and ranking within its peers.
  

C3 Ai's Revenue Breakdown by Earning Segment

Check out Trending Equities.
Is Systems Software space 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 C3 Ai. If investors know C3 Ai 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 C3 Ai listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(2.34)
Revenue Per Share
2.602
Quarterly Revenue Growth
0.196
Return On Assets
(0.19)
Return On Equity
(0.31)
The market value of C3 Ai Inc is measured differently than its book value, which is the value of C3 Ai that is recorded on the company's balance sheet. Investors also form their own opinion of C3 Ai's value that differs from its market value or its book value, called intrinsic value, which is C3 Ai'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 C3 Ai's market value can be influenced by many factors that don't directly affect C3 Ai'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 C3 Ai's value and its price as these two are different measures arrived at by different means. Investors typically determine if C3 Ai is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, C3 Ai'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.

C3 Ai Inc Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining C3 Ai's current stock value. Our valuation model uses many indicators to compare C3 Ai value to that of its competitors to determine the firm's financial worth.
C3 Ai Inc is rated below average in return on equity category among its peers. It also is rated below average in return on asset category among its peers . As of now, C3 Ai's Return On Equity is decreasing as compared to previous years. 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 C3 Ai's earnings, one of the primary drivers of an investment's value.

C3 Ai's Earnings Breakdown by Geography

C3 Ai Return On Asset 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.

C3 Ai

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.31
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.
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.

C3 Ai

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.19
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.

C3 Ai Return On Asset Comparison

C3 Ai is currently under evaluation in return on asset category among its peers.

C3 Ai Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in C3 Ai, profitability is also one of the essential criteria for including it into their portfolios because, without profit, C3 Ai will eventually generate negative long term returns. The profitability progress is the general direction of C3 Ai's change in net profit over the period of time. It can combine multiple indicators of C3 Ai, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-563 K-591.1 K
Net Interest Income40.1 M42.1 M
Interest Income40.1 M42.1 M
Operating Income-318.3 M-302.4 M
Net Loss-279.7 M-265.7 M
Income Before Tax-278.9 M-265 M
Total Other Income Expense Net39.4 M41.4 M
Net Loss-242 M-229.9 M
Net Loss-279.7 M-265.7 M
Income Tax Expense792 K661.1 K
Non Operating Income Net Other25.7 M27 M
Change To Netincome244.1 M256.3 M
Net Loss(2.34)(2.46)
Income Quality 0.28  0.27 
Net Income Per E B T 1.00  1.11 

C3 Ai Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on C3 Ai. 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 C3 Ai 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 C3 Ai's important profitability drivers and their relationship over time.

C3 Ai Profitability Trends

C3 Ai profitability trend refers to the progression of profit or loss within a business. An upward trend means that C3 Ai's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is C3 Ai's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

C3 Ai Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between C3 Ai different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards C3 Ai in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down C3 Ai's future profitability.

Use C3 Ai 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 C3 Ai 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 C3 Ai will appreciate offsetting losses from the drop in the long position's value.

C3 Ai Pair Trading

C3 Ai Inc Pair Trading Analysis

The ability to find closely correlated positions to C3 Ai could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace C3 Ai 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 C3 Ai - 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 C3 Ai Inc to buy it.
The correlation of C3 Ai 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 C3 Ai moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if C3 Ai 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 C3 Ai 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your C3 Ai position

In addition to having C3 Ai 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 Developed Markets Basket ETFs Thematic Idea Now

Developed Markets Basket ETFs
Developed Markets Basket ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Developed Markets Basket ETFs theme has 21 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 Developed Markets Basket ETFs Theme or any other thematic opportunities.
View All  Next Launch

Additional Information and Resources on Investing in C3 Ai Stock

When determining whether C3 Ai Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of C3 Ai's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of C3 Ai Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on C3 Ai Inc Stock:
To fully project C3 Ai's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of C3 Ai 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 C3 Ai's income statement, its balance sheet, and the statement of cash flows.
Potential C3 Ai investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although C3 Ai investors may work on each financial statement separately, they are all related. The changes in C3 Ai's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on C3 Ai's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.