Bank of Shanghai Price To Book vs. Operating Margin

601229 Stock   8.40  0.29  3.58%   
Considering the key profitability indicators obtained from Bank of Shanghai's historical financial statements, Bank of Shanghai may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Bank of Shanghai's ability to earn profits and add value for shareholders.
For Bank of Shanghai profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Bank of Shanghai to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Bank of Shanghai utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Bank of Shanghai's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Bank of Shanghai 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 Bank of Shanghai's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bank of Shanghai is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bank of Shanghai'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.

Bank of Shanghai Operating Margin vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Bank of Shanghai's current stock value. Our valuation model uses many indicators to compare Bank of Shanghai value to that of its competitors to determine the firm's financial worth.
Bank of Shanghai is number one stock in price to book category among its peers. It also is number one stock in operating margin category among its peers reporting about  1.32  of Operating Margin per Price To Book. Comparative valuation analysis is a catch-all model that can be used if you cannot value Bank of Shanghai by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Bank of Shanghai'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.

Bank Operating 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.

Bank of Shanghai

P/B

 = 

MV Per Share

BV Per Share

 = 
0.47 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.
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.

Bank of Shanghai

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.61 %
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.

Bank Operating Margin Comparison

Bank of Shanghai is currently under evaluation in operating margin category among its peers.

Bank of Shanghai Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Bank of Shanghai, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Bank of Shanghai will eventually generate negative long term returns. The profitability progress is the general direction of Bank of Shanghai's change in net profit over the period of time. It can combine multiple indicators of Bank of Shanghai, 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 Income25.7 B16 B
Income Before Tax25.9 B27.2 B
Income Tax ExpenseB1.2 B
Net Income From Continuing Ops22.6 B20.7 B
Total Other Income Expense Net242.1 M160.9 M
Net Income Applicable To Common Shares24.4 B19.4 B
Net Income22.5 B20.6 B
Net Interest Income35.2 B35.1 B
Interest Income94.7 B87.9 B
Change To Netincome-13.3 B-14 B

Bank Profitability Driver Comparison

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

Use Bank of Shanghai 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 Bank of Shanghai 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 Bank of Shanghai will appreciate offsetting losses from the drop in the long position's value.

Bank of Shanghai Pair Trading

Bank of Shanghai Pair Trading Analysis

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

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Other Information on Investing in Bank Stock

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