Lutian Machinery Price To Book vs. Return On Equity
| 605259 Stock | 15.63 0.25 1.63% |
For Lutian Machinery profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lutian Machinery to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lutian Machinery Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lutian Machinery's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lutian Machinery Co over time as well as its relative position and ranking within its peers.
Lutian |
Lutian Machinery Return On Equity vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lutian Machinery's current stock value. Our valuation model uses many indicators to compare Lutian Machinery value to that of its competitors to determine the firm's financial worth. Lutian Machinery Co is number one stock in price to book category among its peers. It is rated fifth in return on equity category among its peers reporting about 0.07 of Return On Equity per Price To Book. The ratio of Price To Book to Return On Equity for Lutian Machinery Co is roughly 15.17 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Lutian Machinery by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lutian Machinery'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.Lutian Return On Equity 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.
Lutian Machinery |
| = | 1.61 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.
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.
Lutian Machinery |
| = | 0.11 |
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.
Lutian Return On Equity Comparison
Lutian Machinery is currently under evaluation in return on equity category among its peers.
Lutian Machinery Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lutian Machinery, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lutian Machinery will eventually generate negative long term returns. The profitability progress is the general direction of Lutian Machinery's change in net profit over the period of time. It can combine multiple indicators of Lutian Machinery, 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 Reported | Projected for Next Year | ||
| Operating Income | 189 M | 151.8 M | |
| Income Before Tax | 202.4 M | 151.5 M | |
| Total Other Income Expense Net | -31.9 K | -33.4 K | |
| Net Income | 179.9 M | 134.2 M | |
| Income Tax Expense | 26.9 M | 16.1 M | |
| Net Interest Income | 33.9 M | 35.5 M | |
| Interest Income | 34.7 M | 36.4 M | |
| Net Income From Continuing Ops | 179.9 M | 166.9 M |
Lutian Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lutian Machinery. 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 Lutian Machinery 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 Lutian Machinery's important profitability drivers and their relationship over time.
Use Lutian Machinery 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 Lutian Machinery 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 Lutian Machinery will appreciate offsetting losses from the drop in the long position's value.Lutian Machinery Pair Trading
Lutian Machinery Co Pair Trading Analysis
The ability to find closely correlated positions to Lutian Machinery could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lutian Machinery 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 Lutian Machinery - 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 Lutian Machinery Co to buy it.
The correlation of Lutian Machinery 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 Lutian Machinery moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lutian Machinery 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 Lutian Machinery 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 Lutian Machinery position
In addition to having Lutian Machinery 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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Other Information on Investing in Lutian Stock
To fully project Lutian Machinery's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lutian Machinery 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 Lutian Machinery's income statement, its balance sheet, and the statement of cash flows.