Hotel Chocolat Return On Equity vs. Profit Margin

HCHOFDelisted Stock  USD 4.68  0.00  0.00%   
Based on Hotel Chocolat's profitability indicators, Hotel Chocolat Group may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in July. Profitability indicators assess Hotel Chocolat's ability to earn profits and add value for shareholders.
For Hotel Chocolat profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hotel Chocolat to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hotel Chocolat Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hotel Chocolat's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hotel Chocolat Group over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons.
Please note, there is a significant difference between Hotel Chocolat's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hotel Chocolat is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hotel Chocolat'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.

Hotel Chocolat Group Profit Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hotel Chocolat's current stock value. Our valuation model uses many indicators to compare Hotel Chocolat value to that of its competitors to determine the firm's financial worth.
Hotel Chocolat Group is rated # 4 in return on equity category among related companies. It is rated # 4 in profit margin category among related companies . Comparative valuation analysis is a catch-all model that can be used if you cannot value Hotel Chocolat by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hotel Chocolat'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 Hotel Chocolat's earnings, one of the primary drivers of an investment's value.

Hotel 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.

Hotel Chocolat

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.11
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.

Hotel Chocolat

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.04) %
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.

Hotel Profit Margin Comparison

Hotel Chocolat is currently under evaluation in profit margin category among related companies.

Hotel Chocolat Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hotel Chocolat, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hotel Chocolat will eventually generate negative long term returns. The profitability progress is the general direction of Hotel Chocolat's change in net profit over the period of time. It can combine multiple indicators of Hotel Chocolat, 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.
Hotel Chocolat Group plc manufactures and retails chocolates under the Hotel Chocolat brand name in the United Kingdom, rest of Europe, Saint Lucia, the United States, Japan, and internationally. Hotel Chocolat Group plc was founded in 1993 and is headquartered in Royston, the United Kingdom. Hotel Chocolat is traded on OTC Exchange in the United States.

Hotel Profitability Driver Comparison

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

Use Hotel Chocolat 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 Hotel Chocolat 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 Hotel Chocolat will appreciate offsetting losses from the drop in the long position's value.

Hotel Chocolat Pair Trading

Hotel Chocolat Group Pair Trading Analysis

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

In addition to having Hotel Chocolat 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 Exotic Funds Thematic Idea Now

Exotic Funds
Exotic Funds Theme
Funds or Etfs with high minimum investment requirement that manage portfolios of alternative investments such as hedge funds, options, futures, real estate or commodities. The Exotic Funds theme has 37 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 Exotic Funds Theme or any other thematic opportunities.
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Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons.
You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Consideration for investing in Hotel Pink Sheet

If you are still planning to invest in Hotel Chocolat Group check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Hotel Chocolat's history and understand the potential risks before investing.
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