South Bow Profitability Analysis
| SOBO Stock | 36.50 0.09 0.25% |
Net Income | First Reported 2010-12-31 | Previous Quarter 316 M | Current Value 303.2 M | Quarterly Volatility 45.3 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.9 | 0.8226 |
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| Net Profit Margin | 0.2 | 0.1491 |
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| Operating Profit Margin | 0.28 | 0.3514 |
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| Pretax Profit Margin | 0.26 | 0.1972 |
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| Return On Assets | 0.0223 | 0.0251 |
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| Return On Equity | 0.15 | 0.1211 |
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For South Bow profitability analysis, we use financial ratios and fundamental drivers that measure the ability of South Bow to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well South Bow utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between South Bow's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of South Bow over time as well as its relative position and ranking within its peers.
South |
South Bow Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining South Bow's current stock value. Our valuation model uses many indicators to compare South Bow value to that of its competitors to determine the firm's financial worth. South Bow is currently regarded as top stock in return on equity category among its peers. It also is currently regarded as top stock in return on asset category among its peers reporting about 0.35 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for South Bow is roughly 2.89 . At this time, South Bow's Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value South Bow by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for South Bow'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.South 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.
South Bow |
| = | 0.11 |
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.
South Bow |
| = | 0.0374 |
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.
South Return On Asset Comparison
South Bow is currently under evaluation in return on asset category among its peers.
South Bow Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in South Bow, profitability is also one of the essential criteria for including it into their portfolios because, without profit, South Bow will eventually generate negative long term returns. The profitability progress is the general direction of South Bow's change in net profit over the period of time. It can combine multiple indicators of South Bow, 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 | ||
| Interest Income | 258 M | 240.3 M | |
| Operating Income | 794 M | 849.2 M | |
| Income Before Tax | 418 M | 392 M | |
| Net Income Applicable To Common Shares | 316 M | 303.2 M | |
| Net Income | 316 M | 303.2 M | |
| Net Income Per Share | 1.52 | 2.00 | |
| Income Quality | 1.67 | 1.89 | |
| Net Income Per E B T | 0.76 | 0.85 |
South Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on South Bow. 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 South Bow 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 South Bow's important profitability drivers and their relationship over time.
Use South Bow 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 South Bow 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 South Bow will appreciate offsetting losses from the drop in the long position's value.South Bow Pair Trading
South Bow Pair Trading Analysis
The ability to find closely correlated positions to South Bow could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace South Bow 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 South Bow - 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 South Bow to buy it.
The correlation of South Bow 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 South Bow moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if South Bow 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 South Bow 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 South Bow position
In addition to having South Bow 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 Investing Thematic Idea Now
Investing
Companies involved in money management and investment banking services. The Investing theme has 47 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 Investing Theme or any other thematic opportunities.
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Other Information on Investing in South Stock
To fully project South Bow's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of South Bow 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 South Bow's income statement, its balance sheet, and the statement of cash flows.