CITIC Securities Cash Flow From Operations vs. Return On Equity

600030 Stock   31.66  0.32  1.02%   
Based on CITIC Securities' profitability indicators, CITIC Securities Co may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess CITIC Securities' ability to earn profits and add value for shareholders.
For CITIC Securities profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CITIC Securities to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CITIC Securities Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CITIC Securities's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CITIC Securities Co over time as well as its relative position and ranking within its peers.
  
Check out Trending Equities.
Please note, there is a significant difference between CITIC Securities' value and its price as these two are different measures arrived at by different means. Investors typically determine if CITIC Securities is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CITIC Securities' 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.

CITIC Securities Return On Equity vs. Cash Flow From Operations Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining CITIC Securities's current stock value. Our valuation model uses many indicators to compare CITIC Securities value to that of its competitors to determine the firm's financial worth.
CITIC Securities Co is number one stock in cash flow from operations category among its peers. It also is number one stock in return on equity category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value CITIC Securities by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for CITIC Securities' 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.

CITIC Return On Equity vs. Cash Flow From Operations

Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.

CITIC Securities

Operating Cash Flow

 = 

EBITDA

-

Taxes

 = 
(40.84 B)
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.
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.

CITIC Securities

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0748
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.

CITIC Return On Equity Comparison

CITIC Securities is currently under evaluation in return on equity category among its peers.

CITIC Securities Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in CITIC Securities, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CITIC Securities will eventually generate negative long term returns. The profitability progress is the general direction of CITIC Securities' change in net profit over the period of time. It can combine multiple indicators of CITIC Securities, 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 Income19.7 B12.3 B
Income Before Tax26.2 B14.4 B
Net Income Applicable To Common Shares24.3 B25.5 B
Net Income19.7 B10.5 B
Income Tax Expense8.8 B9.2 B
Net Income From Continuing Ops20.5 B18.1 B
Total Other Income Expense Net-591.7 M-621.2 M
Net Interest IncomeB3.7 B
Interest Income21.6 B15.2 B
Change To Netincome19.2 B20.1 B

CITIC Profitability Driver Comparison

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

Use CITIC Securities 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 CITIC Securities 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 CITIC Securities will appreciate offsetting losses from the drop in the long position's value.

CITIC Securities Pair Trading

CITIC Securities Co Pair Trading Analysis

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

In addition to having CITIC Securities 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.

Did You Try This Idea?

Run Single Stock ETFs Thematic Idea Now

Single Stock ETFs
Single Stock ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Single Stock ETFs theme has 100 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 Single Stock ETFs Theme or any other thematic opportunities.
View All  Next Launch

Other Information on Investing in CITIC Stock

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