• Andres Chocron

Etoro Stocks Financial Profiles Explained

Updated: Mar 2


Etoro Stock profiles explained

After many years investing in Etoro and being in the Popular Investor program, I've seen many people comment on the platforms publications and even on my stock analysis posts, many questions on the data that Etoro provides for each asset, stock, crypto, etc.


So I decided to create a series of videos and blog posts explaining one by one the data provided so that any investor can understand and better analyze their investments.


Before we begin, its important to understand that the data provided by Etoro or any other investing / trading platform is limited and there are better places to study the financials of any asset but it usually requires a better handle on accounting and finance.


If you dont want to read, feel free to check the video version of this article. I've devided the material into 2 parts. Part One is the Overview and Part Two is the Financial Summary (The same way as this article):

  1. Overview (video): Prev Close, Day's Range, 52 Week Range, Average Volume (3m), One Year Return, Market Cap, P/E Ratio, Revenue, Beta, Dividend (Yield), EPS

  2. Financial Summary (video):

  3. Income Statement: Gross Margin, Operating Margin, Net Profit Margin, Return On Investment, Total Revenue, Gross Profit, Operating Income, Net Income.

  4. Balance Sheet: Quick Ratio, Current Ratio, Long Term Debt to Equity, Total Debt to Equity, Total Assets, Total Liabilities, Total Equity.

  5. Cash Flow Statement: Cash Flow per Share, Revenue per Share, Operating Cash Flow, Cash From Operating Activities, Cash from Investing Activities, Cash from Financing Activities, Net Change in Cash.



Part 1:

Etoro Stock Overview

Etoro Stock Overview Profile

Prev Close:

Last trading day closing price


Day's Range:

The lowest and highest price seen in a day.


52 Week Range:

The lowest and highest price seen in during the last 52 weeks.


Average Volume (3m):

The average volume of the asset traded over the last 3 months. In trading, it's usually compared to each day in order to see if the daily volume is above or below average.


1-Year Return:

How much you would have made or lost if you had bought a year before. In porcentage.


Market Cap:

The total value of all the shares of a company. If a company has 10 million shares and they have a price of 100 usd, then the MarketCap is 1 billion usd.


P/E Ratio:

One of the most famous ratios. The price to earnings ratio is the current share price relative to its earnings per share (EPS). Its a good tool to compare companies of the same industry and to bear in mind in bull markets as the PE ratio tends to grow as investors are willing to value companies higher.


EPS:

Earnings per share is a company's profit divided by the outstanding shares of its common stock. The EPS serves as an indicator of profitability (It's common for a company to report EPS that is adjusted for extraordinary items and potential share dilution). If a share of X is 10 usd and the EPS is 1 usd, then the PE ratio is 10.


Revenue:

It's the total amount of income generated by the sale of goods and services related to the primary operations of the business.


Beta:

Measures the stock volatility relative to the overall market. If a stock has a beta of 1.20 it means, it is 20% more volatile that the market so if the S&P500 goes up 10%, your stock will go up 12%, if the market drops 10%, your stock will drop 12%. - Important note: Many people confuse volatility and risk but they are not the same thing.


Dividend (Yield):

A dividend is a distribution of profit by a company to its investors. There are many ways a company can do this but on etoro we see the amount of money we'll receive for each share we own on a yearly basis and the percentage relative to the price. - Dividends are usually set on a quarterly or yearly basis by the companies.



 

Part 2:

Etoro Stock Financial Summary




Income Statement:


Etoro Stock Income statement Profile

Gross Margin:

It's the part of the revenue a company retains after incurring the direct costs associated with producing the goods it sells and/or the services it provides.


Operating Margin:

It's the percentage of profit a company makes on each dollar of revenue after paying all of the variable costs like wages, raw materials, rent, etc. But before paying taxes.


Net Profit Margin:

Measures how much Net Income or Profit is generated as a percentage of revenue considering interest and taxes paid by the company. The net profit margin shows how much of each dollar in revenue by a company translates into profit.


Return On Investment:

ROI is a performance measure to evaluate the efficiency or profitability of an investment in comparison to another one. It's calculated by dividing the profit earned on an investment by the cost of that investment.


Total Revenue:

It's the total amount of income generated by the sale of goods and services related to the primary operations of the business.


Gross Profit:

It's the profit a business generates after subtracting all the direct costs associated with producing the goods it sells and/or the services it provides. You can calculate gross profit by deducting COGS or "the cost of goods sold" from the Total Revenue.


Operating Income:

Also called Income from operations, it's the amount of profit realized after deducting from Gross Profit all operating expenses incurred from normal operating activities like wages,depreciation, office supplies, utilities, etc.


Net Income:

Also called Net Earnings, it's the amount of profit realized after deducting from Operating Income the interests and taxes paid by the company.


 

Balance Sheet:


Etoro Stock Balance sheet profile

Quick Ratio:

Also called the "Acid Test Ratio". Its a liquidity ratio, its an indicator of short-term liquidity and measures a companies ability to pay off its current liabilities using cash and near-cash assets.


Ways to calculate it:

  1. QR = (Cash + Cash equivalents + Current Receivables + Short term Investments) / Current Liabilities.

  2. QR = (Cash + Cash equivalents + Accounts receivables + Marketable securities) / Current Liabilities.

  3. QR = (Current Assets - Inventory - Prepaid expenses) / Current Liabilities.


Current Ratio:

Also called "Working Capital Ratio", and its Current because it's calculated with current assets and current liabilities. - Its a liquidity ratio that measures the companies ability to pay their short-term obligations. A Current ratio that is similar with the company peers is considered acceptable. If its lower than the sector average, it can be considered a red flag as it indicates higher risk of distress or default.


Current ratio Etoro Aconomics


Long Term Debt to Equity:

This is a simple leverage ratio. It compares the amount of long term debt with the shareholders equity. The goal of this ratio is to determined how leveraged the company is and compare it to its peers. a higher ratio means the company is taking on more debt which in turn makes it more prone to financial risk.


Total Debt to Equity:

D/E ratio is used to evaluate a company's financial leverage and is calculated by dividing a company's total liabilities by its shareholder equity. An easy way to see the degree to which a company is financing its operations through debt versus wholly owned funds.


Total Assets:

The total amount of assets owned by the company. Assets are items of economic value, which are expended over time to yield a benefit. Remember that an asset is something that, at some point, can generate cash, reduce expenses, or grow sales, regardless of whether it's manufacturing equipment or a patent.


Total Liabilities:

The combined debts and obligations that the company owes to outside parties.


Basically, everything the company owns is classified as an asset and all amounts the company owes for future obligations are recorded as liabilities.


Total Equity:

It represents the amount that would be returned to the company’s shareholders if all of the assets were liquidated and all of the company's debts were paid off. Basically, the result of Total Assets - Total Liabilities.


 

Cash Flow Statement:


Etoro stock cash flow statement profile

Cash Flow per Share:

Its the after tax earnings plus depreciation on a per-share basis. It is used as a mesure of financial strength. Adding back amortization and depreciation helps us understand the cash situation better.


Revenue per Share:

Also refered to as Sales per share. It calculates the total revenue earned per share over a period, whether quarterly, annually, or trailing twelve months (TTM). The higher the sales-per-share ratio, the better a company is typically performing. Like most ratios, it helps to compare them with similar companies, industry standards and historical numbers.


Operating Cash Flow:

OCF is a measure of the amount of cash generated by a company's normal business operations. It indicates whether a company can generate sufficient cash flow to maintain and grow its operations, otherwise, it may require external financing.


OCF = Operating Income + Depreciation – Taxes + Change in Working Capital.


Cash From Operating Activities:

Cash flow from operating activities (CFO) indicates the amount of money a company brings in from its ongoing, regular business activities, such as manufacturing and selling goods or providing a service to customers. It is the first section depicted on a company's cash flow statement.


Cash from Investing Activities:

Cash flow from investing activities (CFI) it reports how much cash has been generated or spent from various investment-related activities in a specific period. Investing activities include purchases of physical assets, investments in securities, or the sale of securities or assets. Important, Negative cash flow from investing activities might be due to significant amounts of cash being invested in the long-term health of the company, such as research and development.


Cash from Financing Activities:

Cash flow from financing activities (CFF) is a section of a company’s cash flow statement, which shows the net flows of cash that are used to fund the company. Financing activities include transactions involving debt, equity, and dividends.


Net Change in Cash:

It's the amount by which the company cash balance increases or decreases in an accounting period. Ideally, a company will increase its cash balance each period.

15 views0 comments

Recent Posts

See All