Canadian Utilities Operating Margin vs. Return On Asset
| CDUAF Stock | USD 22.03 0.10 0.45% |
For Canadian Utilities profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Canadian Utilities to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Canadian Utilities Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Canadian Utilities's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Canadian Utilities Limited over time as well as its relative position and ranking within its peers.
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Canadian Utilities Return On Asset vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Canadian Utilities's current stock value. Our valuation model uses many indicators to compare Canadian Utilities value to that of its competitors to determine the firm's financial worth. Canadian Utilities Limited is number one stock in operating margin category among related companies. It is number one stock in return on asset category among related companies reporting about 0.12 of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Canadian Utilities Limited is roughly 8.46 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Canadian Utilities by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Canadian Utilities' 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 Canadian Utilities' earnings, one of the primary drivers of an investment's value.Canadian Return On Asset vs. Operating Margin
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.
Canadian Utilities |
| = | 0.31 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout 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 a firm's competitors.
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.
Canadian Utilities |
| = | 0.0362 |
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.
Canadian Return On Asset Comparison
Canadian Utilities is currently under evaluation in return on asset category among related companies.
Canadian Utilities Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Canadian Utilities, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Canadian Utilities will eventually generate negative long term returns. The profitability progress is the general direction of Canadian Utilities' change in net profit over the period of time. It can combine multiple indicators of Canadian Utilities, 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.
Canadian Utilities Limited and its subsidiaries engage in the electricity, natural gas, and retail energy businesses worldwide. The company was incorporated in 1927 and is headquartered in Calgary, Canada. Canadian Utilities operates under UtilitiesDiversified classification in the United States and is traded on OTC Exchange. It employs 4796 people.
Canadian Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Canadian Utilities. 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 Canadian Utilities 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 Canadian Utilities' important profitability drivers and their relationship over time.
Use Canadian Utilities 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 Canadian Utilities 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 Canadian Utilities will appreciate offsetting losses from the drop in the long position's value.Canadian Utilities Pair Trading
Canadian Utilities Limited Pair Trading Analysis
The ability to find closely correlated positions to Canadian Utilities could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canadian Utilities 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 Canadian Utilities - 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 Canadian Utilities Limited to buy it.
The correlation of Canadian Utilities 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 Canadian Utilities moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canadian Utilities 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 Canadian Utilities 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 Canadian Utilities position
In addition to having Canadian Utilities 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 Banking Thematic Idea Now
Banking
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Banking theme has 61 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 Banking Theme or any other thematic opportunities.
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Check out Trending Equities. Note that the Canadian Utilities information on this page should be used as a complementary analysis to other Canadian Utilities' 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Complementary Tools for Canadian Pink Sheet analysis
When running Canadian Utilities' price analysis, check to measure Canadian Utilities' 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 Canadian Utilities is operating at the current time. Most of Canadian Utilities' value examination focuses on studying past and present price action to predict the probability of Canadian Utilities' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Canadian Utilities' price. Additionally, you may evaluate how the addition of Canadian Utilities to your portfolios can decrease your overall portfolio volatility.
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To fully project Canadian Utilities' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Canadian Utilities 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 Canadian Utilities' income statement, its balance sheet, and the statement of cash flows.