Cheng Mei Price To Earning vs. Return On Asset
| 4960 Stock | 13.30 0.15 1.14% |
For Cheng Mei profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cheng Mei to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cheng Mei Materials utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cheng Mei's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cheng Mei Materials over time as well as its relative position and ranking within its peers.
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Cheng Mei Materials Return On Asset vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cheng Mei's current stock value. Our valuation model uses many indicators to compare Cheng Mei value to that of its competitors to determine the firm's financial worth. Cheng Mei Materials is rated below average in price to earning category among its peers. It is number one stock in return on asset category among its peers reporting about 0.01 of Return On Asset per Price To Earning. The ratio of Price To Earning to Return On Asset for Cheng Mei Materials is roughly 132.20 . 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 Mei's earnings, one of the primary drivers of an investment's value.Cheng Return On Asset 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.
Cheng Mei |
| = | 0.78 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.
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.
Cheng Mei |
| = | 0.0059 |
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.
Cheng Return On Asset Comparison
Cheng Mei is currently under evaluation in return on asset category among its peers.
Cheng Mei Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cheng Mei, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cheng Mei will eventually generate negative long term returns. The profitability progress is the general direction of Cheng Mei's change in net profit over the period of time. It can combine multiple indicators of Cheng Mei, 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.
Chimei Materials Technology Corporation produces and sells polarizing plates to liquid crystal display panel makers in Taiwan.
Cheng Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cheng Mei. 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 Mei 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 Mei's important profitability drivers and their relationship over time.
Use Cheng Mei 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 Mei 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 Mei will appreciate offsetting losses from the drop in the long position's value.Cheng Mei Pair Trading
Cheng Mei Materials Pair Trading Analysis
The ability to find closely correlated positions to Cheng Mei 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 Mei 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 Mei - 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 Mei Materials to buy it.
The correlation of Cheng Mei 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 Mei moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cheng Mei Materials 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 Mei 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 Mei position
In addition to having Cheng Mei 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 Mei's price analysis, check to measure Cheng Mei'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 Mei is operating at the current time. Most of Cheng Mei's value examination focuses on studying past and present price action to predict the probability of Cheng Mei'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 Mei's price. Additionally, you may evaluate how the addition of Cheng Mei to your portfolios can decrease your overall portfolio volatility.