Profitability Analysis To Overcome Risk: The Western Union Company (NYSE:WU), Fortress Investment Group LLC (NYSE:FIG)

The Western Union Company (NYSE:WU) presented as an active mover, shares inching up -0.46% to traded at $19.58 in most recent trading session. The firm has floated short ratio of 12.30%, hold to candle to sentiment indicator of Short Ratio, its stand at 10.38.

Efficiency or profitability analysis gives an appropriate idea for investment decision; WU attains returns on investment ratio of 10.70%, 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 4.70%, 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 8.90% and 39.70% respectively.

Turns back to returns ratios, returns on equity stands at 20.90%. 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 -1.61% and monthly performance was -3.93%. The stock price of WU is moving down from its 20 days moving average with -1.20% and isolated negatively from 50 days moving average with -4.68%.

Following analysis criteria, Fortress Investment Group LLC (NYSE:FIG) attains noticeable attention, it are falling -0.38% to traded at $7.95. FIG attains analyst recommendation of 3.00 on scale of 1-5 with week’s performance of -0.50%.

The firm has noticeable returns on equity ratio of 17.90%, 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 24.80%. To see the other side of depiction, profit margin of FIG stands at positive 7.90%; that indicates a firm actually every dollar of sales keeps in earnings. The 4.50% returns on assets present 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 FIG, it holds price to book ratio of 3.06 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 9.51, and price to earnings ratio calculated as 42.29. The price to earnings growth ration calculated as 0.81. FIG is presenting price to cash flow of 7.74 and free cash flow concluded as 22.89.


About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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