China Overseas Operating Margin vs. Return On Equity
| CAOVF Stock | USD 1.65 0.07 4.07% |
For China Overseas profitability analysis, we use financial ratios and fundamental drivers that measure the ability of China Overseas to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well China Overseas Land utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between China Overseas's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of China Overseas Land over time as well as its relative position and ranking within its peers.
China |
China Overseas Land Return On Equity vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining China Overseas's current stock value. Our valuation model uses many indicators to compare China Overseas value to that of its competitors to determine the firm's financial worth. China Overseas Land is rated below average in operating margin category among its peers. It is rated third in return on equity category among its peers reporting about 0.60 of Return On Equity per Operating Margin. The ratio of Operating Margin to Return On Equity for China Overseas Land is roughly 1.67 . 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 China Overseas' earnings, one of the primary drivers of an investment's value.China Return On Equity vs. Operating Margin
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.
China Overseas |
| = | 0.18 % |
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.
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 Overseas |
| = | 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.
China Return On Equity Comparison
China Overseas is currently under evaluation in return on equity category among its peers.
China Overseas Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in China Overseas, profitability is also one of the essential criteria for including it into their portfolios because, without profit, China Overseas will eventually generate negative long term returns. The profitability progress is the general direction of China Overseas' change in net profit over the period of time. It can combine multiple indicators of China Overseas, 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.
China Overseas Land Investment Limited, an investment holding company, engages in the property development and investment, and other operations in the Peoples Republic of China and the United Kingdom. China Overseas Land Investment Limited is a subsidiary of China Overseas Holdings Limited. China Overseas operates under Real EstateDevelopment classification in the United States and is traded on OTC Exchange. It employs 5692 people.
China Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on China Overseas. 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 Overseas 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 Overseas' important profitability drivers and their relationship over time.
Use China Overseas 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 Overseas 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 Overseas will appreciate offsetting losses from the drop in the long position's value.China Overseas Pair Trading
China Overseas Land Pair Trading Analysis
The ability to find closely correlated positions to China Overseas 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 Overseas 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 Overseas - 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 Overseas Land to buy it.
The correlation of China Overseas 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 Overseas moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if China Overseas Land 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 Overseas 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 Overseas position
In addition to having China Overseas 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 Manufacturing Thematic Idea Now
Manufacturing
Companies that provide goods across residential, commercial and industrial construction such as machinery, tools, or lumber production. The Manufacturing theme has 20 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 Manufacturing Theme or any other thematic opportunities.
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Other Information on Investing in China Pink Sheet
To fully project China Overseas' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of China Overseas Land 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 China Overseas' income statement, its balance sheet, and the statement of cash flows.