Omega Point Blog


Profitability is Inflecting

September 28, 2018

In the past couple of months, we've highlighted how Profitability (a component of Quality), has been Oversold relative to its long-term trend. 

As a reminder, Profitability is a combination of return-on-equity, return-on-assets, cash flow to assets, cash flow to income, gross margin, and sales-to-assets.

Over time, the risk premia for Profitability has been strongly positive (see below), but...

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Omer Cedar
Omer Cedar