Tongyu Communication Operating Margin vs. Price To Sales

002792 Stock   17.10  0.53  3.20%   
Considering Tongyu Communication's profitability and operating efficiency indicators, Tongyu Communication may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Tongyu Communication's ability to earn profits and add value for shareholders.
For Tongyu Communication profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Tongyu Communication to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Tongyu Communication utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Tongyu Communication's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Tongyu Communication 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 Tongyu Communication's value and its price as these two are different measures arrived at by different means. Investors typically determine if Tongyu Communication is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Tongyu Communication'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.

Tongyu Communication Price To Sales vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Tongyu Communication's current stock value. Our valuation model uses many indicators to compare Tongyu Communication value to that of its competitors to determine the firm's financial worth.
Tongyu Communication 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 fabricating about  156.92  of Price To Sales per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Tongyu Communication by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Tongyu Communication's 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.

Tongyu 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.

Tongyu Communication

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.05 %
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.

Tongyu Communication

P/S

 = 

MV Per Share

Revenue Per Share

 = 
7.30 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.

Tongyu Price To Sales Comparison

Tongyu Communication is currently under evaluation in price to sales category among its peers.

Tongyu Communication Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Tongyu Communication, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Tongyu Communication will eventually generate negative long term returns. The profitability progress is the general direction of Tongyu Communication's change in net profit over the period of time. It can combine multiple indicators of Tongyu Communication, 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
Operating Income20.6 M19.5 M
Income Before Tax91.7 M103.6 M
Income Tax Expense1.8 M1.7 M
Net Income From Continuing Ops81.2 M82.8 M
Total Other Income Expense Net-5.1 M-4.8 M
Net Income Applicable To Common Shares73.4 M83 M
Net Income81.2 M81 M
Net Interest Income12.4 M14.1 M
Interest Income14.2 M14.6 M
Change To Netincome-17.9 M-17 M

Tongyu Profitability Driver Comparison

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

Use Tongyu Communication 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 Tongyu Communication 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 Tongyu Communication will appreciate offsetting losses from the drop in the long position's value.

Tongyu Communication Pair Trading

Tongyu Communication Pair Trading Analysis

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

In addition to having Tongyu Communication 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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Real Estate Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Real Estate 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 Real Estate Theme or any other thematic opportunities.
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Other Information on Investing in Tongyu Stock

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