Chongqing Machinery Profit Margin vs. Return On Asset

CE3 Stock  EUR 0.09  0  4.22%   
Based on the key profitability measurements obtained from Chongqing Machinery's financial statements, Chongqing Machinery Electric may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Chongqing Machinery's ability to earn profits and add value for shareholders.
For Chongqing Machinery profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Chongqing Machinery to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Chongqing Machinery Electric utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Chongqing Machinery's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Chongqing Machinery Electric 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 Chongqing Machinery's value and its price as these two are different measures arrived at by different means. Investors typically determine if Chongqing Machinery is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chongqing Machinery'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.

Chongqing Machinery Return On Asset vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Chongqing Machinery's current stock value. Our valuation model uses many indicators to compare Chongqing Machinery value to that of its competitors to determine the firm's financial worth.
Chongqing Machinery Electric is number one stock in profit margin category among its peers. It also is number one stock in return on asset category among its peers . 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 Chongqing Machinery's earnings, one of the primary drivers of an investment's value.

Chongqing Return On Asset vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Chongqing Machinery

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.05 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
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.

Chongqing Machinery

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0025
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.

Chongqing Return On Asset Comparison

Chongqing Machinery is currently under evaluation in return on asset category among its peers.

Chongqing Machinery Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Chongqing Machinery, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Chongqing Machinery will eventually generate negative long term returns. The profitability progress is the general direction of Chongqing Machinery's change in net profit over the period of time. It can combine multiple indicators of Chongqing 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.
Chongqing Machinery Electric Co., Ltd., together with its subsidiaries, manufactures and sells automobile parts and components, general machinery, CNC machine tools, and power equipment in the Peoples Republic of China and internationally. Chongqing Machinery Electric Co., Ltd. is a subsidiary of Chongqing Machinery and Electronics Holding Co., Ltd. Chongqing Machinery operates under Diversified Industrials classification in Germany and is traded on Frankfurt Stock Exchange. It employs 9124 people.

Chongqing Profitability Driver Comparison

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

Use Chongqing 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 Chongqing 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 Chongqing Machinery will appreciate offsetting losses from the drop in the long position's value.

Chongqing Machinery Pair Trading

Chongqing Machinery Electric Pair Trading Analysis

The ability to find closely correlated positions to Chongqing 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 Chongqing 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 Chongqing 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 Chongqing Machinery Electric to buy it.
The correlation of Chongqing 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 Chongqing Machinery moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Chongqing 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 Chongqing 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Chongqing Machinery position

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Other Information on Investing in Chongqing Stock

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