Chengdu Xingrong Net Income vs. Return On Equity

000598 Stock   7.11  0.03  0.42%   
Considering the key profitability indicators obtained from Chengdu Xingrong's historical financial statements, Chengdu Xingrong Investment 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 Chengdu Xingrong's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2018-06-30
Previous Quarter
456.7 M
Current Value
471.2 M
Quarterly Volatility
121.4 M
 
Covid
For Chengdu Xingrong profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Chengdu Xingrong to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Chengdu Xingrong Investment utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Chengdu Xingrong's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Chengdu Xingrong Investment 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 Chengdu Xingrong's value and its price as these two are different measures arrived at by different means. Investors typically determine if Chengdu Xingrong is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chengdu Xingrong'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.

Chengdu Xingrong Inv Return On Equity vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Chengdu Xingrong's current stock value. Our valuation model uses many indicators to compare Chengdu Xingrong value to that of its competitors to determine the firm's financial worth.
Chengdu Xingrong Investment is number one stock in net income category among its peers. It also is number one stock in return on equity category among its peers . The ratio of Net Income to Return On Equity for Chengdu Xingrong Investment is about  16,429,700,633 . At present, Chengdu Xingrong's Net Income is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value Chengdu Xingrong by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Chengdu Xingrong'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.

Chengdu Return On Equity vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Chengdu Xingrong

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
1.84 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Chengdu Xingrong

Return On Equity

 = 

Net Income

Total Equity

 = 
0.11
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Chengdu Return On Equity Comparison

Chengdu Xingrong is currently under evaluation in return on equity category among its peers.

Chengdu Xingrong Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Chengdu Xingrong, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Chengdu Xingrong will eventually generate negative long term returns. The profitability progress is the general direction of Chengdu Xingrong's change in net profit over the period of time. It can combine multiple indicators of Chengdu Xingrong, 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 Income2.5 B2.7 B
Income Before Tax2.2 B2.3 B
Net Income Applicable To Common Shares1.9 BB
Net Income1.8 B1.9 B
Income Tax Expense397 M416.8 M
Net Income From Continuing Ops1.9 B1.4 B
Total Other Income Expense Net6.6 M5.2 M
Net Interest Income-272.4 M-258.8 M
Interest Income148.5 M124 M
Change To Netincome402.5 M210.2 M

Chengdu Profitability Driver Comparison

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

Use Chengdu Xingrong 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 Chengdu Xingrong 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 Chengdu Xingrong will appreciate offsetting losses from the drop in the long position's value.

Chengdu Xingrong Pair Trading

Chengdu Xingrong Investment Pair Trading Analysis

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

In addition to having Chengdu Xingrong 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.

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Small Value Funds
Small Value Funds Theme
Funds or Etfs that invest in the undervalued stocks of small to mid-sized companies. The Small Value Funds theme has 37 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 Small Value Funds Theme or any other thematic opportunities.
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Other Information on Investing in Chengdu Stock

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