Alabama Power Gross Profit vs. EBITDA

For Alabama Power profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alabama Power to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alabama Power utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alabama Power's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alabama Power over time as well as its relative position and ranking within its peers. Check out Trending Equities.
  
Please note, there is a significant difference between Alabama Power's value and its price as these two are different measures arrived at by different means. Investors typically determine Alabama Power value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alabama Power'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.

Alabama Power 5 EBITDA vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Alabama Power's current stock value. Our valuation model uses many indicators to compare Alabama Power value to that of its competitors to determine the firm's financial worth.
Alabama Power is rated below average in gross profit category among related companies. It is rated below average in ebitda category among related companies totaling about  0.97  of EBITDA per Gross Profit. The ratio of Gross Profit to EBITDA for Alabama Power is roughly  1.03 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Alabama Power by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Alabama Power'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 Alabama Power's earnings, one of the primary drivers of an investment's value.

Alabama EBITDA 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.
Alabama Power 
Gross Profit 
 = 
Revenue 
-  
Cost of Revenue 
2.79 B
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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Alabama Power 
EBITDA 
 = 
Revenue 
-  
Basic Expenses 
2.7 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Alabama EBITDA Comparison

Alabama Power is currently under evaluation in ebitda category among related companies.

Alabama Power Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Alabama Power, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Alabama Power will eventually generate negative long term returns. The profitability progress is the general direction of Alabama Power's change in net profit over the period of time. It can combine multiple indicators of Alabama Power, 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.
Alabama Power Company, an integrated utility, generates, purchases, transmits, distributes, and sells electricity to residential, commercial, industrial, and other customers. Alabama Power Company is a subsidiary of The Southern Company. Alabama Power operates under UtilitiesRegulated Electric classification in the United States and is traded on NYQ Exchange. It employs 6324 people.

Alabama Profitability Driver Comparison

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

Use Alabama Power 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 Alabama Power 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 Alabama Power will appreciate offsetting losses from the drop in the long position's value.

Alabama Power Pair Trading

Alabama Power Pair Trading Analysis

The ability to find closely correlated positions to Jabil Circuit could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Jabil Circuit 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 Jabil Circuit - 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 Jabil Circuit to buy it.
The correlation of Jabil Circuit 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 Jabil Circuit moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Jabil Circuit 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 Jabil Circuit 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 Alabama Power position

In addition to having Alabama Power 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.

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Latest Gainers
Latest Gainers Theme
Dynamically computed list of top equities currently sorted across major exchanges. The Latest Gainers theme has 77 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 Latest Gainers Theme or any other thematic opportunities.
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Check out Trending Equities. You can also try Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

Other Tools for Alabama Stock

When running Alabama Power 5 price analysis, check to measure Alabama Power's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alabama Power is operating at the current time. Most of Alabama Power's value examination focuses on studying past and present price action to predict the probability of Alabama Power's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Alabama Power's price. Additionally, you may evaluate how the addition of Alabama Power to your portfolios can decrease your overall portfolio volatility.
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