Home / Tech & Systems / Profitability Margin Analysis Delights Active Investors: CF Industries (NYSE:CF), Steel Dynamics (NASDAQ:STLD)

Profitability Margin Analysis Delights Active Investors: CF Industries (NYSE:CF), Steel Dynamics (NASDAQ:STLD)

CF Industries Holdings, Inc. (NYSE:CF) presented as an active mover, shares surged 0.60% to traded at $28.55 in most recent trading session. The firm has floated short ratio of 15.78%, hold to candle to sentiment indicator of Short Ratio, its stand at 6.14.

Efficiency or profitability analysis gives an appropriate idea for investment decision; CF attains returns on investment ratio of 8.30%, 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 1.80%, 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 9.40% and 26.10% respectively.

Turns back to returns ratios, returns on equity stands at 1.70%. 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 5.39% and monthly performance was 13.02%. The stock price of CF is moving up from its 20 days moving average with 9.65% and isolated positively from 50 days moving average with 16.07%.

Following analysis criteria, Steel Dynamics, Inc. (NASDAQ:STLD) attains noticeable attention, it are moving up 0.11% to traded at $35.78. STLD attains analyst recommendation of 2.00 on scale of 1-5 with week’s performance of 7.19%.

The firm has noticeable returns on equity ratio of 15.20%, 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 0.50%. To see the other side of depiction, profit margin of STLD stands at positive 5.70%; that indicates a firm actually every dollar of sales keeps in earnings. The 6.50% 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 STLD, it holds price to book ratio of 2.94 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 16.73, and price to earnings ratio calculated as 80.95. The price to earnings growth ration calculated as 1.75. STLD is presenting price to cash flow of 8.30 and free cash flow concluded as 13.50.

 

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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