China Automotive Return On Equity vs. Return On Asset
| CAAS Stock | USD 4.35 0.01 0.23% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.10932347 | Current Value 0.1 | Quarterly Volatility 0.15264352 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.25 | 0.18 |
|
|
For China Automotive profitability analysis, we use financial ratios and fundamental drivers that measure the ability of China Automotive to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well China Automotive Systems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between China Automotive's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of China Automotive Systems over time as well as its relative position and ranking within its peers.
China |
Is Automotive Parts & Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of China Automotive. If investors know China will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about China Automotive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.32) | Earnings Share 1.05 | Revenue Per Share 19.701 | Quarterly Revenue Growth 0.154 | Return On Assets 0.0376 |
The market value of China Automotive Systems is measured differently than its book value, which is the value of China that is recorded on the company's balance sheet. Investors also form their own opinion of China Automotive's value that differs from its market value or its book value, called intrinsic value, which is China Automotive's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because China Automotive's market value can be influenced by many factors that don't directly affect China Automotive's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between China Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if China Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Automotive'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.
China Automotive Systems Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining China Automotive's current stock value. Our valuation model uses many indicators to compare China Automotive value to that of its competitors to determine the firm's financial worth. China Automotive Systems is rated fourth in return on equity category among its peers. It is rated fifth in return on asset category among its peers reporting about 0.33 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for China Automotive Systems is roughly 3.01 . At this time, China Automotive's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value China Automotive by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.China Return On Asset vs. Return On Equity
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.
China Automotive |
| = | 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.
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.
China Automotive |
| = | 0.0376 |
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.
China Return On Asset Comparison
China Automotive is currently under evaluation in return on asset category among its peers.
China Automotive Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in China Automotive, profitability is also one of the essential criteria for including it into their portfolios because, without profit, China Automotive will eventually generate negative long term returns. The profitability progress is the general direction of China Automotive's change in net profit over the period of time. It can combine multiple indicators of China Automotive, 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 | ||
| Accumulated Other Comprehensive Income | 3.6 M | 3.4 M | |
| Operating Income | 39.2 M | 20.5 M | |
| Net Income | 37.7 M | 39.5 M | |
| Income Tax Expense | 5.1 M | 4.8 M | |
| Income Before Tax | 48.2 M | 50.6 M | |
| Total Other Income Expense Net | 9 M | 9.4 M | |
| Net Income Applicable To Common Shares | 19.1 M | 11.9 M | |
| Net Income From Continuing Ops | 34.8 M | 36.6 M | |
| Non Operating Income Net Other | 5.9 M | 3.4 M | |
| Interest Income | 1.2 M | 1.5 M | |
| Net Interest Income | -48 K | -50.4 K | |
| Change To Netincome | 8.2 M | 8.6 M | |
| Net Income Per Share | 1.25 | 1.31 | |
| Income Quality | 0.53 | 0.50 | |
| Net Income Per E B T | 0.78 | 0.44 |
China Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on China Automotive. 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 China Automotive 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 China Automotive's important profitability drivers and their relationship over time.
Use China Automotive 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 China Automotive 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 China Automotive will appreciate offsetting losses from the drop in the long position's value.China Automotive Pair Trading
China Automotive Systems Pair Trading Analysis
The ability to find closely correlated positions to China Automotive could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace China Automotive 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 China Automotive - 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 China Automotive Systems to buy it.
The correlation of China Automotive 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 China Automotive moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if China Automotive Systems 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 China Automotive 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 China Automotive position
In addition to having China Automotive 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 Exotic Funds Thematic Idea Now
Exotic Funds
Funds or Etfs with high minimum investment requirement that manage portfolios of alternative investments such as hedge funds, options, futures, real estate or commodities. The Exotic Funds 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 Exotic Funds Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for China Stock Analysis
When running China Automotive's price analysis, check to measure China Automotive'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 China Automotive is operating at the current time. Most of China Automotive's value examination focuses on studying past and present price action to predict the probability of China Automotive's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move China Automotive's price. Additionally, you may evaluate how the addition of China Automotive to your portfolios can decrease your overall portfolio volatility.