Guangshen Railway Current Valuation vs. Total Debt
Based on the key profitability measurements obtained from Guangshen Railway's financial statements, Guangshen Railway may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess Guangshen Railway's ability to earn profits and add value for shareholders.
Check out Risk vs Return Analysis 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 state.
Please note, there is a significant difference between Guangshen Railway's value and its price as these two are different measures arrived at by different means. Investors typically determine if Guangshen Railway is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Guangshen Railway'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.
For Guangshen Railway profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Guangshen Railway to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Guangshen Railway utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Guangshen Railway's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Guangshen Railway over time as well as its relative position and ranking within its peers.
Guangshen |
Guangshen Railway Total Debt vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Guangshen Railway's current stock value. Our valuation model uses many indicators to compare Guangshen Railway value to that of its competitors to determine the firm's financial worth. Guangshen Railway is rated as one of the top companies in current valuation category among its peers. It also is rated as one of the top companies in total debt category among its peers making up about 2.28 of Total Debt per Current Valuation. 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 Guangshen Railway's earnings, one of the primary drivers of an investment's value.Guangshen Current Valuation vs. Competition
Guangshen Railway is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Railroads industry is currently estimated at about 127.53 Billion. Guangshen Railway claims roughly 1.36 Billion in current valuation contributing just under 2% to equities listed under Railroads industry.
Guangshen Total Debt 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.
Guangshen Railway |
| = | 1.36 B |
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.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Guangshen Railway |
| = | 3.11 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Guangshen Total Debt vs Competition
Guangshen Railway is rated as one of the top companies in total debt category among its peers. Total debt of Railroads industry is currently estimated at about 28.63 Billion. Guangshen Railway retains roughly 3.11 Billion in total debt claiming about 11% of equities listed under Railroads industry.
Guangshen Railway Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Guangshen Railway, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Guangshen Railway will eventually generate negative long term returns. The profitability progress is the general direction of Guangshen Railway's change in net profit over the period of time. It can combine multiple indicators of Guangshen Railway, 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.
Guangshen Railway Company Limited engages in the railway passenger and freight transportation business in the Peoples Republic of China. The company was founded in 1996 and is based in Shenzhen, the Peoples Republic of China. Guangshen Railway operates under Railroads classification in the United States and is traded on New York Stock Exchange. It employs 42583 people.
Guangshen Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Guangshen Railway. 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 Guangshen Railway 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 Guangshen Railway's important profitability drivers and their relationship over time.
Use Guangshen Railway 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 Guangshen Railway 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 Guangshen Railway will appreciate offsetting losses from the drop in the long position's value.Guangshen Railway Pair Trading
Guangshen Railway Pair Trading Analysis
The ability to find closely correlated positions to PACCAR could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PACCAR 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 PACCAR - 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 PACCAR Inc to buy it.
The correlation of PACCAR 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 PACCAR moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PACCAR Inc 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 PACCAR 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 Guangshen Railway position
In addition to having Guangshen Railway 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?
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Check out Risk vs Return Analysis 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 state. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Consideration for investing in Guangshen Stock
If you are still planning to invest in Guangshen Railway 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 Guangshen Railway's history and understand the potential risks before investing.
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