Senao Networks Price To Earning vs. Profit Margin

3558 Stock  TWD 206.50  16.00  8.40%   
Based on Senao Networks' profitability indicators, Senao Networks may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess Senao Networks' ability to earn profits and add value for shareholders.
For Senao Networks profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Senao Networks to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Senao Networks utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Senao Networks's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Senao Networks 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 Senao Networks' value and its price as these two are different measures arrived at by different means. Investors typically determine if Senao Networks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Senao Networks' 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.

Senao Networks Profit Margin vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Senao Networks's current stock value. Our valuation model uses many indicators to compare Senao Networks value to that of its competitors to determine the firm's financial worth.
Senao Networks is number one stock in price to earning category among its peers. It also is number one stock in profit margin category among its peers fabricating about  0.01  of Profit Margin per Price To Earning. The ratio of Price To Earning to Profit Margin for Senao Networks is roughly  195.06 . 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 Senao Networks' earnings, one of the primary drivers of an investment's value.

Senao Profit Margin vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Senao Networks

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
13.03 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.

Senao Networks

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.07 %
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.

Senao Profit Margin Comparison

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

Senao Networks Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Senao Networks, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Senao Networks will eventually generate negative long term returns. The profitability progress is the general direction of Senao Networks' change in net profit over the period of time. It can combine multiple indicators of Senao Networks, 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.
Senao Networks, Inc. researches, develops, designs, manufactures, and sells wireless communication products in Taiwan, the United States, Europe, and internationally. Senao Networks, Inc. was founded in 1979 and is headquartered in New Taipei City, Taiwan. SENAO NETWORKS is traded on Taiwan OTC Exchange in Taiwan.

Senao Profitability Driver Comparison

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

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

Senao Networks Pair Trading

Senao Networks Pair Trading Analysis

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

In addition to having Senao Networks 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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Additional Tools for Senao Stock Analysis

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