Electra Battery Profitability Analysis
| ELBM Stock | USD 0.46 0.01 2.13% |
Net Loss | First Reported 2012-12-31 | Previous Quarter -45.5 M | Current Value -46.7 M | Quarterly Volatility 17.4 M |
For Electra Battery profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Electra Battery to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Electra Battery Materials utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Electra Battery's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Electra Battery Materials over time as well as its relative position and ranking within its peers.
Electra |
Is Diversified Metals & Mining 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 Electra Battery. If investors know Electra 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 Electra Battery listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.83) | Return On Assets (0.05) | Return On Equity (0.62) |
The market value of Electra Battery Materials is measured differently than its book value, which is the value of Electra that is recorded on the company's balance sheet. Investors also form their own opinion of Electra Battery's value that differs from its market value or its book value, called intrinsic value, which is Electra Battery'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 Electra Battery's market value can be influenced by many factors that don't directly affect Electra Battery'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 Electra Battery's value and its price as these two are different measures arrived at by different means. Investors typically determine if Electra Battery is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Electra Battery'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.
Electra Battery Materials Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Electra Battery's current stock value. Our valuation model uses many indicators to compare Electra Battery value to that of its competitors to determine the firm's financial worth. Electra Battery Materials is rated # 4 in return on equity category among its peers. It is rated # 2 in return on asset category among its peers . At this time, Electra Battery's Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Electra Battery by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Electra 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.
Electra Battery |
| = | -0.62 |
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.
Electra Battery |
| = | -0.0458 |
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.
Electra Return On Asset Comparison
Electra Battery is currently under evaluation in return on asset category among its peers.
Electra Battery Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Electra Battery, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Electra Battery will eventually generate negative long term returns. The profitability progress is the general direction of Electra Battery's change in net profit over the period of time. It can combine multiple indicators of Electra Battery, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 24 M | 25.2 M | |
| Operating Income | -14 M | -14.7 M | |
| Income Before Tax | -64.7 M | -61.4 M | |
| Net Loss | -64.7 M | -61.4 M | |
| Income Tax Expense | -26.4 M | -25 M | |
| Total Other Income Expense Net | -50.7 M | -48.1 M | |
| Net Income Applicable To Common Shares | 14.4 M | 15.2 M | |
| Net Interest Income | -23.2 M | -22 M | |
| Interest Income | 377.2 K | 301 K | |
| Net Loss | -8.9 M | -9.3 M | |
| Change To Netincome | -24.6 M | -23.4 M | |
| Net Loss | (1.49) | (1.56) | |
| Income Quality | 0.38 | 0.47 |
Electra Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Electra Battery. 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 Electra Battery 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 Electra Battery's important profitability drivers and their relationship over time.
Electra Battery Profitability Trends
Electra Battery profitability trend refers to the progression of profit or loss within a business. An upward trend means that Electra Battery'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 Electra Battery'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.
Electra Battery 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 Electra Battery different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Electra Battery 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 Electra Battery's future profitability.
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Use Electra Battery 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 Electra Battery 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 Electra Battery will appreciate offsetting losses from the drop in the long position's value.Electra Battery Pair Trading
Electra Battery Materials Pair Trading Analysis
The ability to find closely correlated positions to Electra Battery could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Electra Battery 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 Electra Battery - 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 Electra Battery Materials to buy it.
The correlation of Electra Battery 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 Electra Battery moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Electra Battery Materials 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 Electra Battery 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 Electra Battery position
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Additional Information and Resources on Investing in Electra Stock
When determining whether Electra Battery Materials is a strong investment it is important to analyze Electra Battery's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Electra Battery's future performance. For an informed investment choice regarding Electra Stock, refer to the following important reports:Check out Investing Opportunities. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
To fully project Electra Battery's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Electra Battery Materials 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 Electra Battery's income statement, its balance sheet, and the statement of cash flows.