Lichen China Current Valuation vs. Price To Sales

LICN Stock   0.18  0.02  10.00%   
Based on the key profitability measurements obtained from Lichen China's financial statements, Lichen China Limited is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in January. Profitability indicators assess Lichen China's ability to earn profits and add value for shareholders. At this time, Lichen China's Days Sales Outstanding is very stable compared to the past year. As of the 14th of December 2024, Sales General And Administrative To Revenue is likely to grow to 0.26, while Price To Sales Ratio is likely to drop 1.23. At this time, Lichen China's Net Income is very stable compared to the past year. As of the 14th of December 2024, Net Interest Income is likely to grow to about 45.8 K, though Accumulated Other Comprehensive Income is likely to grow to (1.6 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.720.6117
Fairly Up
Slightly volatile
Net Profit Margin0.260.2097
Fairly Up
Slightly volatile
Operating Profit Margin0.360.3083
Fairly Up
Slightly volatile
Pretax Profit Margin0.360.2915
Fairly Up
Slightly volatile
Return On Assets0.120.1272
Notably Down
Slightly volatile
Return On Equity0.130.1358
Sufficiently Down
Slightly volatile
For Lichen China profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lichen China to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lichen China Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lichen China's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lichen China Limited over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Is Environmental & Facilities Services 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 Lichen China. If investors know Lichen 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 Lichen China 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
(0.51)
Earnings Share
0.3
Revenue Per Share
1.491
Quarterly Revenue Growth
0.136
Return On Assets
0.1078
The market value of Lichen China Limited is measured differently than its book value, which is the value of Lichen that is recorded on the company's balance sheet. Investors also form their own opinion of Lichen China's value that differs from its market value or its book value, called intrinsic value, which is Lichen China's 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 Lichen China's market value can be influenced by many factors that don't directly affect Lichen China's 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 Lichen China's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lichen China is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lichen China'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.

Lichen China Limited Price To Sales vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lichen China's current stock value. Our valuation model uses many indicators to compare Lichen China value to that of its competitors to determine the firm's financial worth.
Lichen China Limited is rated below average in current valuation category among its peers. It is rated below average in price to sales category among its peers . At this time, Lichen China's Price To Sales Ratio is very stable compared to the past year. 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 Lichen China's earnings, one of the primary drivers of an investment's value.

Lichen Current Valuation vs. Competition

Lichen China Limited is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is now estimated at about 38.72 Billion. Lichen China has negative current valuation of (23.81 Million) having no influence on the industry.

Lichen Price To Sales 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.

Lichen China

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
(23.81 M)
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.
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.

Lichen China

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.25 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.

Lichen Price To Sales Comparison

Lichen China is currently under evaluation in price to sales category among its peers.

Lichen China Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Lichen China, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lichen China will eventually generate negative long term returns. The profitability progress is the general direction of Lichen China's change in net profit over the period of time. It can combine multiple indicators of Lichen China, 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-1.7 M-1.6 M
Operating Income12.3 M11.6 M
Income Before Tax11.6 M11.6 M
Total Other Income Expense Net-671 K-637.5 K
Net Income Applicable To Common SharesM8.2 M
Net Income8.3 M8.4 M
Income Tax Expense3.2 M3.2 M
Net Interest Income38 K45.8 K
Interest Income38 K45.8 K
Net Income From Continuing Ops8.3 M8.5 M
Change To Netincome-27 K-28.4 K
Net Income Per Share 0.32  0.18 
Income Quality 0.07  0.06 
Net Income Per E B T 0.72  0.58 

Lichen Profitability Driver Comparison

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

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

Lichen China Pair Trading

Lichen China Limited Pair Trading Analysis

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

In addition to having Lichen China 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 Entertainment Thematic Idea Now

Entertainment
Entertainment Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Entertainment 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 Entertainment Theme or any other thematic opportunities.
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When determining whether Lichen China Limited offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Lichen China's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lichen China Limited Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lichen China Limited Stock:
Check out Correlation Analysis.
You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
To fully project Lichen China's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lichen China Limited 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 Lichen China's income statement, its balance sheet, and the statement of cash flows.
Potential Lichen China investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Lichen China investors may work on each financial statement separately, they are all related. The changes in Lichen China's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Lichen China'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.