XCMG Construction Operating Margin vs. Market Capitalization

000425 Stock   7.44  0.47  5.94%   
Considering XCMG Construction's profitability and operating efficiency indicators, XCMG Construction Machinery may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess XCMG Construction's ability to earn profits and add value for shareholders.
For XCMG Construction profitability analysis, we use financial ratios and fundamental drivers that measure the ability of XCMG Construction to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well XCMG Construction Machinery utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between XCMG Construction's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of XCMG Construction Machinery over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between XCMG Construction's value and its price as these two are different measures arrived at by different means. Investors typically determine if XCMG Construction is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, XCMG Construction'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.

XCMG Construction Market Capitalization vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining XCMG Construction's current stock value. Our valuation model uses many indicators to compare XCMG Construction value to that of its competitors to determine the firm's financial worth.
XCMG Construction Machinery is number one stock in operating margin category among its peers. It also is number one stock in market capitalization category among its peers creating about  817,030,947,212  of Market Capitalization per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value XCMG Construction by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for XCMG Construction'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.

XCMG Market Capitalization vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

XCMG Construction

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.11 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.

XCMG Construction

Market Cap

 = 

Shares Outstanding

X

Share Price

 = 
87.91 B
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.

XCMG Market Capitalization vs Competition

XCMG Construction Machinery is number one stock in market capitalization category among its peers. Market capitalization of Industrials industry is presently estimated at about 10.42 Trillion. XCMG Construction maintains roughly 87.91 Billion in market capitalization contributing less than 1% to equities under Industrials industry.
Capitalization  Revenue  Valuation  Workforce  Total debt

XCMG Construction Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in XCMG Construction, profitability is also one of the essential criteria for including it into their portfolios because, without profit, XCMG Construction will eventually generate negative long term returns. The profitability progress is the general direction of XCMG Construction's change in net profit over the period of time. It can combine multiple indicators of XCMG Construction, 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 Next Year
Operating Income7.7 BB
Income Before Tax5.7 BB
Net Income Applicable To Common SharesB5.2 B
Net Income5.3 B5.6 B
Income Tax Expense825.8 M867.1 M
Net Income From Continuing Ops5.2 B3.2 B
Total Other Income Expense Net584.1 M613.3 M
Net Interest Income-1.1 B-1 B
Interest Income634.9 M578 M
Change To Netincome2.1 B2.2 B

XCMG Profitability Driver Comparison

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

Use XCMG Construction 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 XCMG Construction 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 XCMG Construction will appreciate offsetting losses from the drop in the long position's value.

XCMG Construction Pair Trading

XCMG Construction Machinery Pair Trading Analysis

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

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Other Information on Investing in XCMG Stock

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