Analysts Detailing with Profitability Ratio: Taiwan Semiconductor Manufacturing (NYSE:TSM), SolarEdge Technologies (NASDAQ:SEDG)

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) presented as an active mover, shares shows upbeat performance surged 1.09% to traded at $28.86 in most recent trading session. The firm has floated short ratio of 0.68%, hold to candle to sentiment indicator of Short Ratio, its stand at 4.17.

Efficiency or profitability analysis gives an appropriate idea for investment decision; TSM attains returns on investment ratio of 18.70%, which suggests it’s viable on security that has lesser ROI. To strengthen this concept we can use profit margin, which is standing at positive 34.50%, and it is providing insight view about a variety of aspects of a firm’s financial performance. The operating profit margin and gross profit margin can be giving more focus view that is 38.90% and 49.10% respectively.

Turns back to returns ratios, returns on equity stands at 24.60%. Usually, financial analysts consider return on equity ratios in the 15-20% range as an attractive level of investment quality. Narrow down focus to firm performance, its weekly performance was -2.70% and monthly performance was -5.03%. The stock price of TSM is moving down from its 20 days moving average with -3.25% and isolated negatively from 50 days moving average with -5.04%.

Following analysis criteria, SolarEdge Technologies, Inc. (NASDAQ:SEDG) attains noticeable attention, it are increasing 0.80% to traded at $12.60. SEDG attains analyst recommendation of 2.50 on scale of 1-5 with week’s performance of -4.18%.

The firm has noticeable returns on equity ratio of 31.80%, which shows how much profit each dollar of ordinary stockholders’ equity generates. The returns on investment very popular metric among passive investors, it stands at 29.50%. To see the other side of depiction, profit margin of SEDG stands at positive 15.50%; that indicates a firm actually every dollar of sales keeps in earnings. The 20.40% returns on assets presents notable condition of firm. Mostly ROA known as a comparative measure, it is best to compare it against a firm’s previous ROA numbers or the ROA of a same firm.

To find out the technical position of SEDG, it holds price to book ratio of 1.88 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 8.46, and price to earnings ratio calculated as 7.17. The price to earnings growth ration calculated as 2.24. SEDG is presenting price to cash flow of 3.41 and free cash flow concluded as 9.46.

 

About Blake Escott

Blake Escott holds junior writer position in SWR. Before joining Streetwise Report, he was a freelance content Writer. He has high-level copywriting experience and particularly experienced in proofreading and editing. He covers news about different companies including all US market sectors. Interests: Commodities, Energy stocks, Sector-wise Stocks analysis, Utilities

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