Aerojet Rocketdyne Gross Profit vs. Operating Margin

AJRD
 Stock
  

USD 51.85  1.90  3.80%   

For Aerojet Rocketdyne profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Aerojet Rocketdyne to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Aerojet Rocketdyne Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Aerojet Rocketdyne's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Aerojet Rocketdyne Holdings over time as well as its relative position and ranking within its peers. Please continue to Trending Equities.
  
As of November 30, 2022, Price to Sales Ratio is expected to decline to 1.51. In addition to that, Return on Sales is expected to decline to 0.09. Aerojet Rocketdyne Net Income is projected to increase significantly based on the last few years of reporting. The past year's Net Income was at 143.7 Million. The current year Net Income Common Stock is expected to grow to about 155 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (109 M).

Aerojet Rocketdyne Gross Profit

357.07 Million

Is Aerojet Rocketdyne's industry 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 Aerojet Rocketdyne. If investors know Aerojet 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 Aerojet Rocketdyne 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 YOY
(0.67) 
Market Capitalization
B
Quarterly Revenue Growth YOY
0.008
Return On Assets
0.0607
Return On Equity
0.21
The market value of Aerojet Rocketdyne is measured differently than its book value, which is the value of Aerojet that is recorded on the company's balance sheet. Investors also form their own opinion of Aerojet Rocketdyne's value that differs from its market value or its book value, called intrinsic value, which is Aerojet Rocketdyne'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 Aerojet Rocketdyne's market value can be influenced by many factors that don't directly affect Aerojet Rocketdyne'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 Aerojet Rocketdyne's value and its price as these two are different measures arrived at by different means. Investors typically determine Aerojet Rocketdyne value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aerojet Rocketdyne'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.

Aerojet Rocketdyne Operating Margin vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Aerojet Rocketdyne's current stock value. Our valuation model uses many indicators to compare Aerojet Rocketdyne value to that of its competitors to determine the firm's financial worth.
Aerojet Rocketdyne Holdings is rated fifth in gross profit category among related companies. It is rated fourth in operating margin category among related companies . The ratio of Gross Profit to Operating Margin for Aerojet Rocketdyne Holdings is about  29,769,762 . Aerojet Rocketdyne Gross Profit is projected to increase significantly based on the last few years of reporting. The past year's Gross Profit was at 387.9 Million. Comparative valuation analysis is a catch-all model that can be used if you cannot value Aerojet Rocketdyne by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Aerojet Rocketdyne'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. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Aerojet Rocketdyne's earnings, one of the primary drivers of an investment's value.

Aerojet Operating Margin vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Aerojet Rocketdyne 
Gross Profit 
 = 
Revenue 
-  
Cost of Revenue 
387.9 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Aerojet Rocketdyne 
Operating Margin 
 = 
Operating Income 
Revenue 
X
100 
13.03 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Aerojet Operating Margin Comparison

Aerojet Rocketdyne is currently under evaluation in operating margin category among related companies.

Aerojet Rocketdyne Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Aerojet Rocketdyne, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Aerojet Rocketdyne will eventually generate negative long term returns. The profitability progress is the general direction of Aerojet Rocketdyne's change in net profit over the period of time. It can combine multiple indicators of Aerojet Rocketdyne, 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 ReportedProjected for 2022
Accumulated Other Comprehensive Income-101 M-109 M
Consolidated Income143.7 M155 M
Net Income143.7 M155 M
Net Income Common Stock143.7 M155 M
Net Loss Income from Discontinued Operations805 K868.6 K
Operating Income257 M277.3 M
Income Tax Expense51.3 M55.4 M
Net Income Per Employee28.7 K31 K

Aerojet Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Aerojet Rocketdyne. 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 Aerojet Rocketdyne 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 Aerojet Rocketdyne's important profitability drivers and their relationship over time.

Use Aerojet Rocketdyne 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 Aerojet Rocketdyne 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 Aerojet Rocketdyne will appreciate offsetting losses from the drop in the long position's value.

Aerojet Rocketdyne Pair Trading

Aerojet Rocketdyne Holdings Pair Trading Analysis

The ability to find closely correlated positions to Aerojet Rocketdyne could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Aerojet Rocketdyne 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 Aerojet Rocketdyne - 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 Aerojet Rocketdyne Holdings to buy it.
The correlation of Aerojet Rocketdyne is a statistical measure of how it moves in relation to other equities. 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 Aerojet Rocketdyne moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Aerojet Rocketdyne 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 Aerojet Rocketdyne 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Aerojet Rocketdyne position

In addition to having Aerojet Rocketdyne 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 Banking Thematic Idea Now

Banking
Banking Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Banking theme has 36 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 Banking Theme or any other thematic opportunities.
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To fully project Aerojet Rocketdyne's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Aerojet Rocketdyne 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 Aerojet Rocketdyne's income statement, its balance sheet, and the statement of cash flows.
Potential Aerojet Rocketdyne investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Aerojet Rocketdyne investors may work on each financial statement separately, they are all related. The changes in Aerojet Rocketdyne's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Aerojet Rocketdyne's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.