NCI Building Return On Equity vs. Return On Asset
Considering the key profitability indicators obtained from NCI Building's historical financial statements, NCI Building Systems may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in June. Profitability indicators assess NCI Building's ability to earn profits and add value for shareholders.
Check out Correlation 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 main economic indicators.
Please note, there is a significant difference between NCI Building's value and its price as these two are different measures arrived at by different means. Investors typically determine if NCI Building is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NCI Building'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.
For NCI Building profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NCI Building to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NCI Building Systems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NCI Building's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NCI Building Systems over time as well as its relative position and ranking within its peers.
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NCI Building Systems Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NCI Building's current stock value. Our valuation model uses many indicators to compare NCI Building value to that of its competitors to determine the firm's financial worth. NCI Building Systems is considered to be number one stock in return on equity category among related companies. It is considered to be number one stock in return on asset category among related companies . Comparative valuation analysis is a catch-all model that can be used if you cannot value NCI Building by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for NCI Building's 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 NCI Building's earnings, one of the primary drivers of an investment's value.NCI 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.
NCI Building |
| = | -2.0E-4 |
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.
NCI Building |
| = | -0.3 |
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.
NCI Return On Asset Comparison
NCI Building is currently under evaluation in return on asset category among related companies.
NCI Building Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NCI Building, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NCI Building will eventually generate negative long term returns. The profitability progress is the general direction of NCI Building's change in net profit over the period of time. It can combine multiple indicators of NCI Building, 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.
NCI Building Systems, Inc. designs, engineers, manufactures, and markets metal products for the nonresidential construction industry in North America. NCI Building Systems, Inc. was founded in 1984 and is headquartered in Houston, Texas. NCI Building operates under Metal Fabrication classification in USA and is traded on BATS Exchange.
NCI Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NCI Building. 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 NCI Building 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 NCI Building's important profitability drivers and their relationship over time.
Use NCI Building 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 NCI Building 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 NCI Building will appreciate offsetting losses from the drop in the long position's value.NCI Building Pair Trading
NCI Building Systems Pair Trading Analysis
The ability to find closely correlated positions to PepsiCo could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PepsiCo 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 PepsiCo - 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 PepsiCo to buy it.
The correlation of PepsiCo 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 PepsiCo moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PepsiCo 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 PepsiCo 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 NCI Building position
In addition to having NCI Building 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 Office Supplies Thematic Idea Now
Office Supplies
Companies producing and selling office supplies, and accessories. The Office Supplies theme has 39 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 Office Supplies Theme or any other thematic opportunities.
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Check out Correlation 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 main economic indicators. Note that the NCI Building Systems information on this page should be used as a complementary analysis to other NCI Building's 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Consideration for investing in NCI Stock
If you are still planning to invest in NCI Building Systems 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 NCI Building's history and understand the potential risks before investing.
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