Mercury Systems Return On Equity vs. Number Of Shares Shorted
| MRCY Stock | USD 30.95 0.30 0.96% |
For Mercury Systems profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Mercury Systems to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Mercury Systems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Mercury Systems's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Mercury Systems over time as well as its relative position and ranking within its peers.
Mercury |
Is Mercury Systems' industry 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 Mercury Systems. If investors know Mercury 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 Mercury Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Mercury Systems is measured differently than its book value, which is the value of Mercury that is recorded on the company's balance sheet. Investors also form their own opinion of Mercury Systems' value that differs from its market value or its book value, called intrinsic value, which is Mercury Systems' 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 Mercury Systems' market value can be influenced by many factors that don't directly affect Mercury Systems' 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 Mercury Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine if Mercury Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mercury Systems' 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.
Mercury Systems Number Of Shares Shorted vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Mercury Systems's current stock value. Our valuation model uses many indicators to compare Mercury Systems value to that of its competitors to determine the firm's financial worth. Mercury Systems is rated below average in return on equity category among related companies. It is considered to be number one stock in number of shares shorted category among related companies . Comparative valuation analysis is a catch-all model that can be used if you cannot value Mercury Systems by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Mercury Systems' Stock. 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 Mercury Systems' earnings, one of the primary drivers of an investment's value.Mercury Number Of Shares Shorted 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.
Mercury Systems |
| = | -0.0891 |
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.
Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.
Mercury Systems |
| = | 4.39 M |
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.
Mercury Number Of Shares Shorted Comparison
Mercury Systems is currently under evaluation in number of shares shorted category among related companies.
Mercury Systems Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Mercury Systems, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Mercury Systems will eventually generate negative long term returns. The profitability progress is the general direction of Mercury Systems' change in net profit over the period of time. It can combine multiple indicators of Mercury Systems, 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.
Mercury Systems, Inc., a technology company, manufactures and sells components, products, modules, and subsystems for aerospace and defense industries in the United States, Europe, and the Asia Pacific. Mercury Systems, Inc. was incorporated in 1981 and is headquartered in Andover, Massachusetts. Mercury Sys operates under Aerospace Defense classification in the United States and is traded on NASDAQ Exchange. It employs 2386 people.
Mercury Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Mercury Systems. 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 Mercury Systems 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 Mercury Systems' important profitability drivers and their relationship over time.
Use Mercury Systems 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 Mercury Systems 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 Mercury Systems will appreciate offsetting losses from the drop in the long position's value.Mercury Systems Pair Trading
Mercury Systems Pair Trading Analysis
The ability to find closely correlated positions to Mercury Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Mercury Systems 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 Mercury Systems - 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 Mercury Systems to buy it.
The correlation of Mercury Systems 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 Mercury Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Mercury Systems 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 Mercury Systems 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 Mercury Systems position
In addition to having Mercury Systems 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 Diversified Assets Thematic Idea Now
Diversified Assets
Pablicly traded close-end funds and other entities backed by different types of diversified investments. The Diversified Assets theme has 38 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 Diversified Assets Theme or any other thematic opportunities.
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Check out Correlation Analysis. For more information on how to buy Mercury Stock please use our How to Invest in Mercury Systems guide.Note that the Mercury Systems information on this page should be used as a complementary analysis to other Mercury Systems' 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Complementary Tools for Mercury Stock analysis
When running Mercury Systems' price analysis, check to measure Mercury Systems' 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 Mercury Systems is operating at the current time. Most of Mercury Systems' value examination focuses on studying past and present price action to predict the probability of Mercury Systems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Mercury Systems' price. Additionally, you may evaluate how the addition of Mercury Systems to your portfolios can decrease your overall portfolio volatility.
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To fully project Mercury Systems' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Mercury Systems 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 Mercury Systems' income statement, its balance sheet, and the statement of cash flows.