Cheng Shin Return On Equity vs. Profit Margin
| 2105 Stock | TWD 50.60 0.20 0.40% |
For Cheng Shin profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cheng Shin to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cheng Shin Rubber utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cheng Shin's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cheng Shin Rubber over time as well as its relative position and ranking within its peers.
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Cheng Shin Rubber Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cheng Shin's current stock value. Our valuation model uses many indicators to compare Cheng Shin value to that of its competitors to determine the firm's financial worth. Cheng Shin Rubber is number one stock in return on equity category among its peers. It also is number one stock in profit margin category among its peers fabricating about 0.82 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Cheng Shin Rubber is roughly 1.23 . 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 Cheng Shin's earnings, one of the primary drivers of an investment's value.Cheng Profit Margin vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.0608 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
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| = | 0.05 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Cheng Profit Margin Comparison
Cheng Shin is currently under evaluation in profit margin category among its peers.
Cheng Shin Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cheng Shin, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cheng Shin will eventually generate negative long term returns. The profitability progress is the general direction of Cheng Shin's change in net profit over the period of time. It can combine multiple indicators of Cheng Shin, 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.
Co., Ltd., together with subsidiaries, processes, manufactures, and trades in bicycle tires, electrical vehicle tires, reclaimed rubbers, various rubbers and resins, and other rubber products. Co., Ltd. was founded in 1967 and is headquartered in Changhua, Taiwan. CHENG SHIN operates under Rubber Plastics classification in Taiwan and is traded on Taiwan Stock Exchange. It employs 30909 people.
Cheng Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cheng Shin. 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 Cheng Shin 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 Cheng Shin's important profitability drivers and their relationship over time.
Use Cheng Shin 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 Cheng Shin 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 Cheng Shin will appreciate offsetting losses from the drop in the long position's value.Cheng Shin Pair Trading
Cheng Shin Rubber Pair Trading Analysis
The ability to find closely correlated positions to Cheng Shin could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cheng Shin 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 Cheng Shin - 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 Cheng Shin Rubber to buy it.
The correlation of Cheng Shin 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 Cheng Shin moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cheng Shin Rubber 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 Cheng Shin 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.Use Investing Themes to Complement your Cheng Shin position
In addition to having Cheng Shin 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?
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Additional Tools for Cheng Stock Analysis
When running Cheng Shin's price analysis, check to measure Cheng Shin's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cheng Shin is operating at the current time. Most of Cheng Shin's value examination focuses on studying past and present price action to predict the probability of Cheng Shin's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cheng Shin's price. Additionally, you may evaluate how the addition of Cheng Shin to your portfolios can decrease your overall portfolio volatility.