Raia Drogasil Profitability Analysis

RADLY Stock  USD 7.27  0.27  3.86%   
For Raia Drogasil profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Raia Drogasil to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Raia Drogasil SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Raia Drogasil's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Raia Drogasil SA over time as well as its relative position and ranking within its peers. Additionally, take a look at Your Equity Center.
  
Please note, there is a significant difference between Raia Drogasil's value and its price as these two are different measures arrived at by different means. Investors typically determine Raia Drogasil value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Raia Drogasil'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.

Raia Drogasil SA Current Ratio vs. Price to Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Raia Drogasil's current stock value. Our valuation model uses many indicators to compare Raia Drogasil value to that of its competitors to determine the firm's financial worth.
Raia Drogasil SA is currently regarded as top stock in price to book category among related companies. It is currently regarded as top stock in current ratio category among related companies fabricating about  0.22  of Current Ratio per Price to Book. The ratio of Price to Book to Current Ratio for Raia Drogasil SA is roughly  4.59 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Raia Drogasil by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Raia Drogasil'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 Raia Drogasil's earnings, one of the primary drivers of an investment's value.

RADLY Current Ratio vs. Price to Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Raia Drogasil 
P/B 
 = 
MV Per Share 
BV Per Share 
7.21 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Raia Drogasil 
Current Ratio 
 = 
Current Asset 
Current Liabilities 
1.57 X
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).

RADLY Current Ratio Comparison

Raia Drogasil is currently under evaluation in current ratio category among related companies.

Raia Drogasil Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Raia Drogasil, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Raia Drogasil will eventually generate negative long term returns. The profitability progress is the general direction of Raia Drogasil's change in net profit over the period of time. It can combine multiple indicators of Raia Drogasil, 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.
Raia Drogasil S.A. engages in the retail sale of medicines, perfumery, personal care and beauty products, cosmetics, dermocosmetics, and specialty medicines in Brazil. The company was founded in 1905 and is headquartered in So Paulo, Brazil. RAIA DROGASIL operates under Pharmaceutical Retailers classification in the United States and is traded on OTC Exchange. It employs 50320 people.

RADLY Profitability Driver Comparison

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

Use Raia Drogasil 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 Raia Drogasil 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 Raia Drogasil will appreciate offsetting losses from the drop in the long position's value.

Raia Drogasil Pair Trading

Raia Drogasil SA Pair Trading Analysis

The ability to find closely correlated positions to Raia Drogasil could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Raia Drogasil 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 Raia Drogasil - 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 Raia Drogasil SA to buy it.
The correlation of Raia Drogasil is a statistical measure of how it moves in relation to other equities. 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 Raia Drogasil moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Raia Drogasil SA 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 Raia Drogasil 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

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Additionally, take a look at Your Equity Center. You can also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

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To fully project Raia Drogasil's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Raia Drogasil SA 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 Raia Drogasil's income statement, its balance sheet, and the statement of cash flows.
Potential Raia Drogasil investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Raia Drogasil investors may work on each financial statement separately, they are all related. The changes in Raia Drogasil's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Raia Drogasil'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.