SohuCom Profitability Analysis

SOHU Stock  USD 12.04  0.13  1.07%   
Taking into consideration SohuCom's profitability measurements, SohuCom may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess SohuCom's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2000-03-31
Previous Quarter
-37.7 M
Current Value
-16.3 M
Quarterly Volatility
96.1 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, SohuCom's Days Sales Outstanding is comparatively stable compared to the past year. Sales General And Administrative To Revenue is likely to gain to 0.14 in 2024, despite the fact that Operating Cash Flow Sales Ratio is likely to grow to (0.04). At this time, SohuCom's Total Other Income Expense Net is comparatively stable compared to the past year. Net Interest Income is likely to gain to about 47.5 M in 2024, despite the fact that Net Loss is likely to grow to (29.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.50.7573
Way Down
Slightly volatile
For SohuCom profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SohuCom to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SohuCom utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SohuCom's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SohuCom over time as well as its relative position and ranking within its peers.
  

SohuCom's Revenue Breakdown by Earning Segment

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For more information on how to buy SohuCom Stock please use our How to Invest in SohuCom guide.
Is Interactive Media & Services 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 SohuCom. If investors know SohuCom 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 SohuCom 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
(0.76)
Earnings Share
(2.16)
Revenue Per Share
17.896
Quarterly Revenue Growth
0.133
Return On Assets
(0.04)
The market value of SohuCom is measured differently than its book value, which is the value of SohuCom that is recorded on the company's balance sheet. Investors also form their own opinion of SohuCom's value that differs from its market value or its book value, called intrinsic value, which is SohuCom'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 SohuCom's market value can be influenced by many factors that don't directly affect SohuCom'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 SohuCom's value and its price as these two are different measures arrived at by different means. Investors typically determine if SohuCom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SohuCom'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.

SohuCom Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining SohuCom's current stock value. Our valuation model uses many indicators to compare SohuCom value to that of its competitors to determine the firm's financial worth.
SohuCom is rated fifth in return on equity category among its peers. It is rated below average in return on asset category among its peers . At this time, SohuCom's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value SohuCom 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.

SohuCom Return On Asset 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.

SohuCom

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.0878
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.
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.

SohuCom

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0394
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.

SohuCom Return On Asset Comparison

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

SohuCom Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in SohuCom, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SohuCom will eventually generate negative long term returns. The profitability progress is the general direction of SohuCom's change in net profit over the period of time. It can combine multiple indicators of SohuCom, 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 Income-46.5 M-44.2 M
Operating Income-87.3 M-82.9 M
Net Loss-30.6 M-29.1 M
Income Tax Expense60.4 M43.3 M
Income Before Tax-5.7 M-5.4 M
Total Other Income Expense Net81.7 M85.7 M
Net Loss-15.6 M-14.8 M
Net Loss-66.1 M-69.4 M
Interest Income45.2 M23.6 M
Net Interest Income45.2 M47.5 M
Change To Netincome-923 M-876.8 M
Net Loss(0.89)(0.85)
Income Quality 0.83  0.88 
Net Income Per E B T 5.38  5.65 

SohuCom Profitability Driver Comparison

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

SohuCom Profitability Trends

SohuCom profitability trend refers to the progression of profit or loss within a business. An upward trend means that SohuCom's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is SohuCom's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

SohuCom Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between SohuCom different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards SohuCom in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down SohuCom's future profitability.

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

SohuCom Pair Trading

SohuCom Pair Trading Analysis

The ability to find closely correlated positions to SohuCom could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SohuCom 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 SohuCom - 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 SohuCom to buy it.
The correlation of SohuCom 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 SohuCom moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SohuCom 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 SohuCom 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 SohuCom position

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Oil And Gas
Oil And Gas Theme
Companies involved in drilling, production, and distribution of oil and gas pipelines. The Oil And Gas theme has 44 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 Oil And Gas Theme or any other thematic opportunities.
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Additional Tools for SohuCom Stock Analysis

When running SohuCom's price analysis, check to measure SohuCom's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy SohuCom is operating at the current time. Most of SohuCom's value examination focuses on studying past and present price action to predict the probability of SohuCom's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move SohuCom's price. Additionally, you may evaluate how the addition of SohuCom to your portfolios can decrease your overall portfolio volatility.