But note, different industries have different margin rates that are considered good.

How good is it?

And like the P/E ratio, a lower number is typically considered 'better' than a higher number.The scores are based on the trading styles of Value, Growth, and Momentum. Using this item along with the 'Current Cash Flow Growth Rate' (in the Growth category above), and the 'Price to Cash Flow ratio' (several items above in this same Value category), will give you a well-rounded indication of the amount of cash they are generating, the rate of their cash flow growth, and the stock price relative to its cash flow.The scores are based on the trading styles of Value, Growth, and Momentum. While a P/B of less than 3 would mean it's trading at a discount to the market, different industries have different median P/B values. Ideally, an investor would like to see a positive EPS change percentage in all periods, i.e., 1 week, 4 weeks, and 12 weeks.The Value Scorecard table also displays the values for its respective Industry along with the values and Value Score of its three closest peers.You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer.

The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.Cash flow itself is an important item on the income statement. Get the latest Roche Holding AG RHHBY detailed stock quotes, stock data, Real-Time ECN, charts, stats and more.
So, as with other valuation metrics, it's a good idea to compare it to its relevant industry.A higher number is better than a lower one as it shows how effective a company is at generating revenue from its assets. ROE values, like other values, can vary significantly from one industry to another.Within the VGM Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.The technique has proven to be very useful for finding positive surprises. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.If a company's net margin is 15%, for example, that means its net income (or profit) is 15 cents for every $1 of sales the company makes. A change in margin can reflect either a change in business conditions, or a company's cost controls, or both.

Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of B.One of the reasons why some investors prefer the P/CF ratio over the P/E ratio is because the net income of the cash flow portion rightly adds depreciation and amortization back in since these are not cash expenditures.

In general, a lower number or multiple is usually considered better that a higher one. A rising stock on above average volume is typically a bullish sign whereas a declining stock on above average volume is typically bearish.