Leonardo DRS Return On Equity vs. Profit Margin
| DRS Stock | 25.51 0.06 0.23% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.07225806 | Current Value 0.0788 | Quarterly Volatility 0.03079967 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.15 | 0.2215 |
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| Operating Profit Margin | 0.0698 | 0.0881 |
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| Return On Assets | 0.041 | 0.0416 |
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| Return On Equity | 0.0788 | 0.0723 |
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For Leonardo DRS profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Leonardo DRS to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Leonardo DRS Common utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Leonardo DRS's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Leonardo DRS Common over time as well as its relative position and ranking within its peers.
Leonardo |
Leonardo DRS's Revenue Breakdown by Earning Segment
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Is Aerospace & Defense 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 Leonardo DRS. If investors know Leonardo 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 Leonardo DRS listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.383 | Earnings Share 0.7 | Revenue Per Share 11.232 | Quarterly Revenue Growth 0.209 | Return On Assets 0.0436 |
The market value of Leonardo DRS Common is measured differently than its book value, which is the value of Leonardo that is recorded on the company's balance sheet. Investors also form their own opinion of Leonardo DRS's value that differs from its market value or its book value, called intrinsic value, which is Leonardo DRS'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 Leonardo DRS's market value can be influenced by many factors that don't directly affect Leonardo DRS'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 Leonardo DRS's value and its price as these two are different measures arrived at by different means. Investors typically determine if Leonardo DRS is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Leonardo DRS'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.
Leonardo DRS Common Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Leonardo DRS's current stock value. Our valuation model uses many indicators to compare Leonardo DRS value to that of its competitors to determine the firm's financial worth. Leonardo DRS Common is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in profit margin category among its peers fabricating about 0.76 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Leonardo DRS Common is roughly 1.31 . At this time, Leonardo DRS's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Leonardo DRS 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.Leonardo 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.
Leonardo DRS |
| = | 0.0823 |
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.
Leonardo DRS |
| = | 0.06 % |
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.
Leonardo Profit Margin Comparison
Leonardo DRS is currently under evaluation in profit margin category among its peers.
Leonardo DRS Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Leonardo DRS, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Leonardo DRS will eventually generate negative long term returns. The profitability progress is the general direction of Leonardo DRS's change in net profit over the period of time. It can combine multiple indicators of Leonardo DRS, 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 | -47 M | -49.4 M | |
| Interest Income | 39.1 M | 41.1 M | |
| Operating Income | 249 M | 197.1 M | |
| Income Before Tax | 192 M | 151.8 M | |
| Net Income Applicable To Common Shares | 465.8 M | 489 M | |
| Net Income | 168 M | 124.9 M | |
| Net Interest Income | -39.1 M | -41.1 M | |
| Net Income From Continuing Ops | 159 M | 159.1 M | |
| Total Other Income Expense Net | -57 M | -59.9 M | |
| Income Tax Expense | 24 M | 42.2 M | |
| Non Operating Income Net Other | -1.8 M | -1.9 M | |
| Change To Netincome | -319.5 M | -303.5 M | |
| Net Income Per Share | 0.64 | 0.62 | |
| Income Quality | 1.22 | 1.28 | |
| Net Income Per E B T | 0.88 | 0.61 |
Leonardo Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Leonardo DRS. 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 Leonardo DRS 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 Leonardo DRS's important profitability drivers and their relationship over time.
Use Leonardo DRS 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 Leonardo DRS 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 Leonardo DRS will appreciate offsetting losses from the drop in the long position's value.Leonardo DRS Pair Trading
Leonardo DRS Common Pair Trading Analysis
The ability to find closely correlated positions to Leonardo DRS could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Leonardo DRS 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 Leonardo DRS - 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 Leonardo DRS Common to buy it.
The correlation of Leonardo DRS 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 Leonardo DRS moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Leonardo DRS Common 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 Leonardo DRS 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 Leonardo DRS position
In addition to having Leonardo DRS 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?
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Banks
Large and small money and credit banks and credit services. The Banks theme has 42 constituents at this time.
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Additional Tools for Leonardo Stock Analysis
When running Leonardo DRS's price analysis, check to measure Leonardo DRS's 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 Leonardo DRS is operating at the current time. Most of Leonardo DRS's value examination focuses on studying past and present price action to predict the probability of Leonardo DRS's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Leonardo DRS's price. Additionally, you may evaluate how the addition of Leonardo DRS to your portfolios can decrease your overall portfolio volatility.