Bank of Communications Current Valuation vs. Operating Margin
| 601328 Stock | 7.43 0.04 0.54% |
For Bank of Communications profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Bank of Communications to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Bank of Communications utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Bank of Communications's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Bank of Communications over time as well as its relative position and ranking within its peers.
Bank |
Bank of Communications Operating Margin vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Bank of Communications's current stock value. Our valuation model uses many indicators to compare Bank of Communications value to that of its competitors to determine the firm's financial worth. Bank of Communications is the top company in current valuation category among its peers. It also is number one stock in operating margin category among its peers . The ratio of Current Valuation to Operating Margin for Bank of Communications is about 2,916,930,187,770 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Bank of Communications by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Bank of Communications' 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.Bank Current Valuation vs. Competition
Bank of Communications is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is presently estimated at about 1.75 Trillion. Bank of Communications totals roughly 1.42 Trillion in current valuation claiming about 82% of equities under Financials industry.
Bank Operating Margin vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Bank of Communications |
| = | 1.42 T |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
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.
Bank of Communications |
| = | 0.49 % |
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.
Bank Operating Margin Comparison
Bank of Communications is currently under evaluation in operating margin category among its peers.
Bank of Communications Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Bank of Communications, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Bank of Communications will eventually generate negative long term returns. The profitability progress is the general direction of Bank of Communications' change in net profit over the period of time. It can combine multiple indicators of Bank of Communications, 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 Reported | Projected for Next Year | ||
| Operating Income | 101.7 B | 117.7 B | |
| Income Before Tax | 99.7 B | 75.2 B | |
| Net Income Applicable To Common Shares | 97.4 B | 58.9 B | |
| Net Income | 92.7 B | 62.7 B | |
| Income Tax Expense | 7.1 B | 12.4 B | |
| Net Income From Continuing Ops | 93.3 B | 86.9 B | |
| Total Other Income Expense Net | -243 M | -230.8 M | |
| Net Interest Income | 164.1 B | 163.1 B | |
| Interest Income | 459.9 B | 405.4 B | |
| Change To Netincome | 9.5 B | 9.9 B |
Bank Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Bank of Communications. 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 Bank of Communications 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 Bank of Communications' important profitability drivers and their relationship over time.
Use Bank of Communications 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 Bank of Communications 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 Bank of Communications will appreciate offsetting losses from the drop in the long position's value.Bank of Communications Pair Trading
Bank of Communications Pair Trading Analysis
The ability to find closely correlated positions to Bank of Communications could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bank of Communications 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 Bank of Communications - 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 Bank of Communications to buy it.
The correlation of Bank of Communications 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 Bank of Communications moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bank of Communications 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 Bank of Communications 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.Use Investing Themes to Complement your Bank of Communications position
In addition to having Bank of Communications 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?
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Steel Works Etc
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Steel Works Etc theme has 54 constituents at this time.
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Other Information on Investing in Bank Stock
To fully project Bank of Communications' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Bank of Communications 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 Bank of Communications' income statement, its balance sheet, and the statement of cash flows.