CNFinance Holdings Gross Profit vs. Price To Earning

CNF Stock  USD 0.90  0.06  6.25%   
Based on CNFinance Holdings' profitability indicators, CNFinance Holdings is yielding more profit at the present time then in previous quarter. It has a moderate chance of reporting better profitability numbers in January. Profitability indicators assess CNFinance Holdings' ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2016-03-31
Previous Quarter
176.7 M
Current Value
176.7 M
Quarterly Volatility
154.2 T
 
Yuan Drop
 
Covid
At this time, CNFinance Holdings' Sales General And Administrative To Revenue is most likely to slightly decrease in the upcoming years. The CNFinance Holdings' current Operating Cash Flow Sales Ratio is estimated to increase to 2.12, while EV To Sales is projected to decrease to 5.74. At this time, CNFinance Holdings' Operating Income is most likely to decrease significantly in the upcoming years. The CNFinance Holdings' current Net Income From Continuing Ops is estimated to increase to about 265.5 M, while Total Other Income Expense Net is projected to decrease to (376.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.230.1949
Fairly Up
Slightly volatile
Operating Profit Margin0.760.6684
Fairly Up
Slightly volatile
Pretax Profit Margin0.320.2435
Significantly Up
Slightly volatile
Return On Assets0.00960.0101
Notably Down
Slightly volatile
Return On Equity0.0390.0411
Notably Down
Slightly volatile
For CNFinance Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CNFinance Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CNFinance Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CNFinance Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CNFinance Holdings over time as well as its relative position and ranking within its peers.
  
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Is Commercial & Residential Mortgage Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CNFinance Holdings. If investors know CNFinance will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CNFinance Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.33)
Earnings Share
0.24
Revenue Per Share
12.22
Quarterly Revenue Growth
(0.15)
Return On Assets
0.0075
The market value of CNFinance Holdings is measured differently than its book value, which is the value of CNFinance that is recorded on the company's balance sheet. Investors also form their own opinion of CNFinance Holdings' value that differs from its market value or its book value, called intrinsic value, which is CNFinance Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CNFinance Holdings' market value can be influenced by many factors that don't directly affect CNFinance Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CNFinance Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if CNFinance Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CNFinance Holdings' 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.

CNFinance Holdings Price To Earning vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining CNFinance Holdings's current stock value. Our valuation model uses many indicators to compare CNFinance Holdings value to that of its competitors to determine the firm's financial worth.
CNFinance Holdings is rated below average in gross profit category among its peers. It is number one stock in price to earning category among its peers . The ratio of Gross Profit to Price To Earning for CNFinance Holdings is about  47,441,788 . At this time, CNFinance Holdings' Gross Profit is most likely to decrease significantly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value CNFinance Holdings by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

CNFinance Price To Earning vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

CNFinance Holdings

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
424.6 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

CNFinance Holdings

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
8.95 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

CNFinance Price To Earning Comparison

CNFinance Holdings is currently under evaluation in price to earning category among its peers.

CNFinance Holdings Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in CNFinance Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CNFinance Holdings will eventually generate negative long term returns. The profitability progress is the general direction of CNFinance Holdings' change in net profit over the period of time. It can combine multiple indicators of CNFinance Holdings, 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
Accumulated Other Comprehensive Income-9.3 M-9.8 M
Net Interest IncomeB1.1 B
Interest Income1.8 B1.9 B
Operating Income564.5 M854.9 M
Net Income From Continuing Ops174.3 M265.5 M
Income Before Tax205.6 M361 M
Total Other Income Expense Net-358.9 M-376.8 M
Net Income Applicable To Common Shares124 M117.8 M
Net Income164.6 M264.4 M
Income Tax Expense41 M39 M
Change To Netincome674.6 M708.3 M
Net Income Per Share 2.20  2.09 
Income Quality 10.36  10.88 
Net Income Per E B T 0.80  0.59 

CNFinance Profitability Driver Comparison

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

Use CNFinance Holdings 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 CNFinance Holdings 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 CNFinance Holdings will appreciate offsetting losses from the drop in the long position's value.

CNFinance Holdings Pair Trading

CNFinance Holdings Pair Trading Analysis

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

In addition to having CNFinance Holdings 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 37 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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When determining whether CNFinance Holdings is a strong investment it is important to analyze CNFinance Holdings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CNFinance Holdings' future performance. For an informed investment choice regarding CNFinance Stock, refer to the following important reports:
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For more detail on how to invest in CNFinance Stock please use our How to Invest in CNFinance Holdings guide.
You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project CNFinance Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CNFinance Holdings 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 CNFinance Holdings' income statement, its balance sheet, and the statement of cash flows.
Potential CNFinance Holdings investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although CNFinance Holdings investors may work on each financial statement separately, they are all related. The changes in CNFinance Holdings's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on CNFinance Holdings'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.