National Vision Profit Margin vs. Working Capital

EYE
 Stock
  

USD 37.11  0.19  0.51%   

For National Vision profitability analysis, we use financial ratios and fundamental drivers that measure the ability of National Vision to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well National Vision Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between National Vision's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of National Vision Holdings over time as well as its relative position and ranking within its peers. Continue to Investing Opportunities.
  
The current year Price to Sales Ratio is expected to grow to 1.93, whereas Return on Sales is forecasted to decline to 0.07. As of August 19, 2022, Accumulated Other Comprehensive Income is expected to decline to about (8.7 M). In addition to that, Consolidated Income is expected to decline to about 74.5 M.
Is National Vision'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 National Vision. If investors know National 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 National Vision 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
-0.71
Market Capitalization
2.9 B
Quarterly Revenue Growth YOY
-0.073
Return On Assets
0.0323
Return On Equity
0.0952
The market value of National Vision Holdings is measured differently than its book value, which is the value of National that is recorded on the company's balance sheet. Investors also form their own opinion of National Vision's value that differs from its market value or its book value, called intrinsic value, which is National Vision'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 National Vision's market value can be influenced by many factors that don't directly affect National Vision'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 National Vision's value and its price as these two are different measures arrived at by different means. Investors typically determine National Vision value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, National Vision'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.

National Vision Holdings Working Capital vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining National Vision's current stock value. Our valuation model uses many indicators to compare National Vision value to that of its competitors to determine the firm's financial worth.
National Vision Holdings is rated below average in profit margin category among related companies. It is rated below average in working capital category among related companies reporting about  40,730,841  of Working Capital per Profit Margin. National Vision Profit Margin is projected to slightly decrease based on the last few years of reporting. The past year's Profit Margin was at 0.06. Comparative valuation analysis is a catch-all model that can be used if you cannot value National Vision by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for National Vision'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 National Vision's earnings, one of the primary drivers of an investment's value.

National Working Capital vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
National Vision 
Profit Margin 
 = 
Net Income 
Revenue 
X
100 
4.28 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Working Capital is a measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is an important indicator of the firm ability to continue its normal operations without additional debt obligations. .
National Vision 
Working Capital 
 = 
Current Assets 
Current Liabilities 
174.33 M
Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.

National Working Capital Comparison

National Vision is currently under evaluation in working capital category among related companies.

National Vision Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in National Vision, profitability is also one of the essential criteria for including it into their portfolios because, without profit, National Vision will eventually generate negative long term returns. The profitability progress is the general direction of National Vision's change in net profit over the period of time. It can combine multiple indicators of National Vision, 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-1.9 M-8.7 M
Consolidated Income128.2 M74.5 M
Net Income128.2 M74.5 M
Net Income Common Stock128.2 M74.5 M
Operating Income174.9 M125.8 M
Income Tax Expense21.1 M17.2 M
Net Income Per Employee9.4 K5.7 K

National Profitability Driver Comparison

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

Use National Vision 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 National Vision 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 National Vision will appreciate offsetting losses from the drop in the long position's value.

National Vision Pair Trading

National Vision Holdings Pair Trading Analysis

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

In addition to having National Vision 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 Money Market Thematic Idea Now

Money Market
Money Market Theme
Funds or Etfs investing in various types of short-term (less than one year) fixed income instruments of high-quality and liquidity. The Money Market theme has 40 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 Money Market Theme or any other thematic opportunities.
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Continue to Investing Opportunities. Note that the National Vision Holdings information on this page should be used as a complementary analysis to other National Vision's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Bond Directory module to find actively traded corporate debentures issued by US companies.

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To fully project National Vision's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of National Vision Holdings 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 National Vision's income statement, its balance sheet, and the statement of cash flows.
Potential National Vision investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although National Vision investors may work on each financial statement separately, they are all related. The changes in National Vision's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on National Vision'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.