Hotai Price To Book vs. Profit Margin

2207 Stock  TWD 614.00  9.00  1.44%   
Considering the key profitability indicators obtained from Hotai's historical financial statements, Hotai Motor Co 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 Hotai's ability to earn profits and add value for shareholders.
For Hotai profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hotai to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hotai Motor Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hotai's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hotai Motor Co 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 Hotai's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hotai is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hotai'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.

Hotai Motor Profit Margin vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hotai's current stock value. Our valuation model uses many indicators to compare Hotai value to that of its competitors to determine the firm's financial worth.
Hotai Motor Co is number one stock in price to book category among its peers. It also is number one stock in profit margin category among its peers . 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 Hotai's earnings, one of the primary drivers of an investment's value.

Hotai Profit Margin vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Hotai

P/B

 = 

MV Per Share

BV Per Share

 = 
6.70 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.

Hotai

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.03) %
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.

Hotai Profit Margin Comparison

Hotai is currently under evaluation in profit margin category among its peers.

Hotai Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hotai, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hotai will eventually generate negative long term returns. The profitability progress is the general direction of Hotai's change in net profit over the period of time. It can combine multiple indicators of Hotai, 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.
Hotai Motor Co., Ltd., together with its subsidiaries, assembles, imports, trades, and sells vehicles, automobile air conditioners, and related parts in Taiwan and Mainland China. The company was incorporated in 1947 and is headquartered in Taipei, Taiwan. HOTAI MOTOR operates under Vehicle Sales And Repair classification in Taiwan and is traded on Taiwan Stock Exchange.

Hotai Profitability Driver Comparison

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

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

Hotai Pair Trading

Hotai Motor Co Pair Trading Analysis

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

In addition to having Hotai 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 Cigarettes Thematic Idea Now

Cigarettes
Cigarettes Theme
Tobacco makers and distributors across globe. The Cigarettes theme has 43 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 Cigarettes Theme or any other thematic opportunities.
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Additional Tools for Hotai Stock Analysis

When running Hotai's price analysis, check to measure Hotai'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 Hotai is operating at the current time. Most of Hotai's value examination focuses on studying past and present price action to predict the probability of Hotai's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hotai's price. Additionally, you may evaluate how the addition of Hotai to your portfolios can decrease your overall portfolio volatility.