China Pharma Current Valuation vs. Gross Profit

CPHI Stock  USD 0.20  0.01  4.76%   
Based on the key profitability measurements obtained from China Pharma's financial statements, China Pharma Holdings 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 China Pharma's ability to earn profits and add value for shareholders. The current Price To Sales Ratio is estimated to decrease to 0.28. The current Days Sales Outstanding is estimated to decrease to 32.76. As of now, China Pharma's Income Quality is decreasing as compared to previous years. The China Pharma's current Net Income Per E B T is estimated to increase to 3.11, while Accumulated Other Comprehensive Income is projected to decrease to under 9.9 M.
For China Pharma profitability analysis, we use financial ratios and fundamental drivers that measure the ability of China Pharma to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well China Pharma Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between China Pharma's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of China Pharma Holdings over time as well as its relative position and ranking within its peers.
  
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Is Pharmaceuticals 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 Pharma. 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 Pharma listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.69)
Revenue Per Share
0.63
Quarterly Revenue Growth
(0.16)
Return On Assets
(0.18)
Return On Equity
(0.75)
The market value of China Pharma Holdings 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 Pharma's value that differs from its market value or its book value, called intrinsic value, which is China Pharma'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 Pharma's market value can be influenced by many factors that don't directly affect China Pharma'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 Pharma's value and its price as these two are different measures arrived at by different means. Investors typically determine if China Pharma is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Pharma'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 Pharma Holdings Gross Profit vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining China Pharma's current stock value. Our valuation model uses many indicators to compare China Pharma value to that of its competitors to determine the firm's financial worth.
China Pharma Holdings is rated below average in current valuation category among its peers. It is rated below average in gross profit category among its peers fabricating about  0.04  of Gross Profit per Current Valuation. The ratio of Current Valuation to Gross Profit for China Pharma Holdings is roughly  25.20 . The last year's value of Gross Profit was reported at (281,085). 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 Pharma's earnings, one of the primary drivers of an investment's value.

China Current Valuation vs. Competition

China Pharma Holdings is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Health Care industry is currently estimated at about 3.64 Billion. China Pharma adds roughly 8.8 Million in current valuation claiming only tiny portion of equities under Health Care industry.

China Gross Profit vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

China Pharma

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
8.8 M
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

China Pharma

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
349.27 K
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

China Gross Profit Comparison

China Pharma is currently under evaluation in gross profit category among its peers.

China Pharma Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in China Pharma, profitability is also one of the essential criteria for including it into their portfolios because, without profit, China Pharma will eventually generate negative long term returns. The profitability progress is the general direction of China Pharma's change in net profit over the period of time. It can combine multiple indicators of China Pharma, 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
Accumulated Other Comprehensive Income11.5 M9.9 M
Operating Income-2.8 M-2.6 M
Income Before Tax-3.1 M-2.9 M
Total Other Income Expense Net-327 K-343.3 K
Net Loss-3.1 M-2.9 M
Income Tax Expense(4.00)(3.80)
Net Loss-3.1 M-3.2 M
Net Loss-3.1 M-3.3 M
Non Operating Income Net Other5.1 K4.9 K
Interest Income5.1 K4.8 K
Net Interest Income-374.4 K-393.2 K
Change To Netincome-276 K-262.2 K
Net Loss(0.91)(0.86)
Income Quality 0.23  0.24 
Net Income Per E B T 2.96  3.11 

China Profitability Driver Comparison

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

Use China Pharma 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 Pharma 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 Pharma will appreciate offsetting losses from the drop in the long position's value.

China Pharma Pair Trading

China Pharma Holdings Pair Trading Analysis

The ability to find closely correlated positions to China Pharma 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 Pharma 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 Pharma - 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 Pharma Holdings to buy it.
The correlation of China Pharma 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 Pharma moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if China Pharma Holdings 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 Pharma 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 China Pharma position

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When determining whether China Pharma Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of China Pharma's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of China Pharma Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on China Pharma Holdings Stock:
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You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
To fully project China Pharma's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of China Pharma Holdings 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 Pharma's income statement, its balance sheet, and the statement of cash flows.
Potential China Pharma investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although China Pharma investors may work on each financial statement separately, they are all related. The changes in China Pharma's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on China Pharma'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.