Tencent Holdings Operating Margin vs. Return On Asset

NNND Stock  EUR 49.00  0.11  0.22%   
Based on Tencent Holdings' profitability indicators, Tencent Holdings may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Tencent Holdings' ability to earn profits and add value for shareholders.
For Tencent Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Tencent Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Tencent Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Tencent Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Tencent Holdings 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 Tencent Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Tencent Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Tencent 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.

Tencent Holdings Return On Asset vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Tencent Holdings's current stock value. Our valuation model uses many indicators to compare Tencent Holdings value to that of its competitors to determine the firm's financial worth.
Tencent Holdings is considered to be number one stock in operating margin category among its peers. It also is considered to be number one stock in return on asset category among its peers reporting about  0.23  of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Tencent Holdings is roughly  4.40 . 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 Tencent Holdings' earnings, one of the primary drivers of an investment's value.

Tencent Return On Asset 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.

Tencent Holdings

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.18 %
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 Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Tencent Holdings

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0415
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Tencent Return On Asset Comparison

Tencent Holdings is currently under evaluation in return on asset category among its peers.

Tencent Holdings Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Tencent Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Tencent Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Tencent Holdings' change in net profit over the period of time. It can combine multiple indicators of Tencent 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.
Tencent Holdings Limited, an investment holding company, provides value-added services and Online advertising services in Mainland China and internationally. Tencent Holdings Limited company was founded in 1998 and is headquartered in Shenzhen, the Peoples Republic of China. TENCENT HLDGS operates under Internet Content Information classification in Germany and is traded on Frankfurt Stock Exchange. It employs 89228 people.

Tencent Profitability Driver Comparison

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

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Pair Correlation

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Use Investing Themes to Complement your Tencent Holdings position

In addition to having Tencent 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.

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Automobiles and Trucks
Automobiles and Trucks Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Automobiles and Trucks theme has 61 constituents at this time.
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Other Information on Investing in Tencent Stock

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