Gulf Resources Return On Equity vs. Operating Margin
| GURE Stock | USD 0.62 0.05 8.77% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (0.30) | Current Value (0.29) | Quarterly Volatility 0.27829629 |
For Gulf Resources profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Gulf Resources to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Gulf Resources utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Gulf Resources's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Gulf Resources over time as well as its relative position and ranking within its peers.
Gulf |
Is Commodity Chemicals 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 Gulf Resources. If investors know Gulf 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 Gulf Resources listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.662 | Earnings Share (9.26) | Revenue Per Share 1.552 | Quarterly Revenue Growth (0.70) | Return On Assets (0.13) |
The market value of Gulf Resources is measured differently than its book value, which is the value of Gulf that is recorded on the company's balance sheet. Investors also form their own opinion of Gulf Resources' value that differs from its market value or its book value, called intrinsic value, which is Gulf Resources' 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 Gulf Resources' market value can be influenced by many factors that don't directly affect Gulf Resources' 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 Gulf Resources' value and its price as these two are different measures arrived at by different means. Investors typically determine if Gulf Resources is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gulf Resources' 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.
Gulf Resources Operating Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Gulf Resources's current stock value. Our valuation model uses many indicators to compare Gulf Resources value to that of its competitors to determine the firm's financial worth. Gulf Resources is one of the top stocks in return on equity category among its peers. It is rated # 2 in operating margin category among its peers . At present, Gulf Resources' Return On Equity is projected to increase slightly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Gulf Resources 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.Gulf Operating Margin vs. Return On Equity
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.
Gulf Resources |
| = | -0.46 |
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.
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.
Gulf Resources |
| = | (14.40) % |
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.
Gulf Operating Margin Comparison
Gulf Resources is currently under evaluation in operating margin category among its peers.
Gulf Resources Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Gulf Resources, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Gulf Resources will eventually generate negative long term returns. The profitability progress is the general direction of Gulf Resources' change in net profit over the period of time. It can combine multiple indicators of Gulf Resources, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -15 M | -14.2 M | |
| Operating Income | -11.9 M | -11.3 M | |
| Income Before Tax | -58.3 M | -55.3 M | |
| Net Loss | -61.8 M | -58.7 M | |
| Income Tax Expense | 5.9 M | 4.5 M | |
| Total Other Income Expense Net | -46.5 M | -44.2 M | |
| Net Loss | -832.2 K | -790.6 K | |
| Net Loss | -61.8 M | -58.7 M | |
| Non Operating Income Net Other | 335 K | 474.9 K | |
| Interest Income | 250.1 K | 315.5 K | |
| Net Interest Income | 144.9 K | 212.9 K | |
| Change To Netincome | 21.5 M | 22.5 M | |
| Net Loss | (5.92) | (6.22) | |
| Income Quality | 0.53 | 0.50 | |
| Net Income Per E B T | 1.06 | 0.78 |
Gulf Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Gulf Resources. 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 Gulf Resources 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 Gulf Resources' important profitability drivers and their relationship over time.
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Check out Risk vs Return Analysis. For information on how to trade Gulf Stock refer to our How to Trade Gulf Stock guide.You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Gulf Resources' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Gulf Resources 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 Gulf Resources' income statement, its balance sheet, and the statement of cash flows.