China Tower Operating Margin vs. Current Valuation

CHWRF Stock  USD 0.14  0.01  7.69%   
Considering China Tower's profitability and operating efficiency indicators, China Tower 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 China Tower's ability to earn profits and add value for shareholders.
For China Tower profitability analysis, we use financial ratios and fundamental drivers that measure the ability of China Tower to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well China Tower utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between China Tower's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of China Tower 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 China Tower's value and its price as these two are different measures arrived at by different means. Investors typically determine if China Tower is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Tower'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.

China Tower Current Valuation vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining China Tower's current stock value. Our valuation model uses many indicators to compare China Tower value to that of its competitors to determine the firm's financial worth.
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China Tower is number one stock in operating margin category among its peers. It also is the top company in current valuation category among its peers reporting about  185,696,925,446  of Current Valuation per Operating Margin. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the China Tower's earnings, one of the primary drivers of an investment's value.

China Current Valuation 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.

China Tower

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.17 %
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.
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.

China Tower

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
31.23 B
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.

China Current Valuation vs Competition

China Tower is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Telecom Services industry is currently estimated at about 915.64 Billion. China Tower holds roughly 31.23 Billion in current valuation claiming about 3% of equities listed under Telecom Services industry.
CHWRFVZTCMCSACHWRF3.4%VZ37.0%T33.5%CMCSA26.1%100%

China Tower Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in China Tower, profitability is also one of the essential criteria for including it into their portfolios because, without profit, China Tower will eventually generate negative long term returns. The profitability progress is the general direction of China Tower's change in net profit over the period of time. It can combine multiple indicators of China Tower, 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.
China Tower Corporation Limited provides telecommunication tower infrastructure services in the Peoples Republic of China. China Tower Corporation Limited was incorporated in 2014 and is headquartered in Beijing, the Peoples Republic of China. China Tower is traded on OTC Exchange in the United States.

China Profitability Driver Comparison

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

Use China Tower 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 China Tower 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 China Tower will appreciate offsetting losses from the drop in the long position's value.

China Tower Pair Trading

China Tower Pair Trading Analysis

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

In addition to having China Tower 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 Non-Metallic and Industrial Metal Mining Thematic Idea Now

Non-Metallic and Industrial Metal Mining
Non-Metallic and Industrial Metal Mining Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Non-Metallic and Industrial Metal Mining theme has 61 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 Non-Metallic and Industrial Metal Mining Theme or any other thematic opportunities.
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Other Information on Investing in China Pink Sheet

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