Chahua Modern Operating Margin vs. Return On Equity

603615 Stock   21.65  0.05  0.23%   
Considering Chahua Modern's profitability and operating efficiency indicators, Chahua Modern Housewares 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 Chahua Modern's ability to earn profits and add value for shareholders.
For Chahua Modern profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Chahua Modern to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Chahua Modern Housewares utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Chahua Modern's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Chahua Modern Housewares 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 Chahua Modern's value and its price as these two are different measures arrived at by different means. Investors typically determine if Chahua Modern is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chahua Modern'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.

Chahua Modern Housewares Return On Equity vs. Operating Margin Fundamental Analysis

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

Chahua Return On Equity 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.

Chahua Modern

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.02 %
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.
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.

Chahua Modern

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.0114
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.

Chahua Return On Equity Comparison

Chahua Modern is currently under evaluation in return on equity category among its peers.

Chahua Modern Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Chahua Modern, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Chahua Modern will eventually generate negative long term returns. The profitability progress is the general direction of Chahua Modern's change in net profit over the period of time. It can combine multiple indicators of Chahua Modern, 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 Income4.4 M4.1 M
Income Before Tax6.6 M6.3 M
Income Tax Expense605.6 K575.3 K
Net Income From Continuing Ops4.7 M4.5 M
Total Other Income Expense Net30.9 M32.4 M
Net Loss-18.4 M-17.5 M
Net Income4.7 M4.5 M
Net Interest Income11.9 M12.5 M
Interest Income14.6 M9.8 M
Change To Netincome11.7 M12.2 M

Chahua Profitability Driver Comparison

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

Use Chahua Modern 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 Chahua Modern 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 Chahua Modern will appreciate offsetting losses from the drop in the long position's value.

Chahua Modern Pair Trading

Chahua Modern Housewares Pair Trading Analysis

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

In addition to having Chahua Modern 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 Adviser Favorites Thematic Idea Now

Adviser Favorites
Adviser Favorites Theme
Financial advisors frequently recommend that individuals diversify their investment portfolios with a mix of different types of stocks. These can include blue-chip stocks, growth stocks, and dividend stocks. The Adviser Favorites theme has 17 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 Adviser Favorites Theme or any other thematic opportunities.
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Other Information on Investing in Chahua Stock

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