Futu Holdings Current Ratio vs. Earnings Per Share
Based on Futu Holdings' profitability indicators, Futu Holdings Limited 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 Futu Holdings' ability to earn profits and add value for shareholders.
Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate.
Please note, there is a significant difference between Futu Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Futu Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Futu Holdings' 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.
For Futu Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Futu Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Futu Holdings Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Futu Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Futu Holdings Limited over time as well as its relative position and ranking within its peers.
Futu |
Futu Holdings Limited Earnings Per Share vs. Current Ratio Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Futu Holdings's current stock value. Our valuation model uses many indicators to compare Futu Holdings value to that of its competitors to determine the firm's financial worth. Futu Holdings Limited is one of the top stocks in current ratio category among its peers. It also is one of the top stocks in earnings per share category among its peers creating about 0.48 of Earnings Per Share per Current Ratio. The ratio of Current Ratio to Earnings Per Share for Futu Holdings Limited is roughly 2.09 . Comparative valuation analysis is a catch-all technique that is used if you cannot value Futu Holdings 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.Futu Earnings Per Share vs. Current Ratio
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Futu Holdings |
| = | 1.15 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
Futu Holdings |
| = | 0.55 X |
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.
Futu Earnings Per Share Comparison
Futu Holdings is currently under evaluation in earnings per share category among its peers.
Futu Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Futu Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Futu Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Futu Holdings' change in net profit over the period of time. It can combine multiple indicators of Futu Holdings, 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.
Futu Holdings Limited operates digitized brokerage platform in Hong Kong, China, Japan, the United States, and internationally. The company was founded in 2011 and is headquartered in Admiralty, Hong Kong. Futu Holdings is traded on BATS Exchange in USA.
Futu Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Futu Holdings. 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 Futu Holdings 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 Futu Holdings' important profitability drivers and their relationship over time.
Use Futu Holdings 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 Futu Holdings 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 Futu Holdings will appreciate offsetting losses from the drop in the long position's value.Futu Holdings Pair Trading
Futu Holdings Limited Pair Trading Analysis
The ability to find closely correlated positions to AES could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AES 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 AES - 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 The AES to buy it.
The correlation of AES 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 AES moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AES 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 AES 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 Futu Holdings position
In addition to having Futu Holdings 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 Broad Municipals ETFs Thematic Idea Now
Broad Municipals ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Broad Municipals ETFs theme has 51 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 Broad Municipals ETFs Theme or any other thematic opportunities.
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Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Consideration for investing in Futu Stock
If you are still planning to invest in Futu Holdings Limited check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Futu Holdings' history and understand the potential risks before investing.
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