VeriSilicon Microelectronics Operating Margin vs. Price To Sales

688521 Stock   49.50  1.90  3.70%   
Based on VeriSilicon Microelectronics' profitability indicators, VeriSilicon Microelectronics Shanghai 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 VeriSilicon Microelectronics' ability to earn profits and add value for shareholders.
For VeriSilicon Microelectronics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of VeriSilicon Microelectronics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well VeriSilicon Microelectronics Shanghai utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between VeriSilicon Microelectronics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of VeriSilicon Microelectronics Shanghai 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 VeriSilicon Microelectronics' value and its price as these two are different measures arrived at by different means. Investors typically determine if VeriSilicon Microelectronics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, VeriSilicon Microelectronics' 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.

VeriSilicon Microelectronics Price To Sales vs. Operating Margin Fundamental Analysis

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

VeriSilicon Price To Sales 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.

VeriSilicon Microelectronics

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(0.1) %
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.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

VeriSilicon Microelectronics

P/S

 = 

MV Per Share

Revenue Per Share

 = 
11.24 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

VeriSilicon Price To Sales Comparison

VeriSilicon Microelectronics is currently under evaluation in price to sales category among its peers.

VeriSilicon Microelectronics Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in VeriSilicon Microelectronics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, VeriSilicon Microelectronics will eventually generate negative long term returns. The profitability progress is the general direction of VeriSilicon Microelectronics' change in net profit over the period of time. It can combine multiple indicators of VeriSilicon Microelectronics, 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
Net Interest Income-11.6 M-11 M
Interest Income11.9 M8.9 M
Operating Income-95.4 M-90.7 M
Net Loss-296.5 M-281.6 M
Income Before Tax-269.2 M-255.8 M
Net Income296.5 M311.3 M

VeriSilicon Profitability Driver Comparison

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

Use VeriSilicon Microelectronics 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 VeriSilicon Microelectronics 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 VeriSilicon Microelectronics will appreciate offsetting losses from the drop in the long position's value.

VeriSilicon Microelectronics Pair Trading

VeriSilicon Microelectronics Shanghai Pair Trading Analysis

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

In addition to having VeriSilicon Microelectronics 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 Communication Services Thematic Idea Now

Communication Services
Communication Services Theme
Companies that provide networking, telecom, and long distance services. The Communication Services theme has 47 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 Communication Services Theme or any other thematic opportunities.
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Other Information on Investing in VeriSilicon Stock

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