Shengkai Innovations Net Income vs. Profit Margin

VALVDelisted Stock  USD 0.0001  0.00  0.00%   
Based on Shengkai Innovations' profitability indicators, Shengkai Innovations 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 Shengkai Innovations' ability to earn profits and add value for shareholders.
For Shengkai Innovations profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Shengkai Innovations to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Shengkai Innovations utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Shengkai Innovations's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Shengkai Innovations over time as well as its relative position and ranking within its peers.
  
Check out World Market Map 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 bureau of economic analysis.
Please note, there is a significant difference between Shengkai Innovations' value and its price as these two are different measures arrived at by different means. Investors typically determine if Shengkai Innovations is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shengkai Innovations' 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.

Shengkai Innovations Profit Margin vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Shengkai Innovations's current stock value. Our valuation model uses many indicators to compare Shengkai Innovations value to that of its competitors to determine the firm's financial worth.
Shengkai Innovations is rated first in net income category among its peers. It is rated first in profit margin category among its peers . 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 Shengkai Innovations' earnings, one of the primary drivers of an investment's value.

Shengkai Profit Margin vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Shengkai Innovations

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
2.42 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Shengkai Innovations

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.20) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Shengkai Profit Margin Comparison

Shengkai Innovations is currently under evaluation in profit margin category among its peers.

Shengkai Innovations Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Shengkai Innovations, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Shengkai Innovations will eventually generate negative long term returns. The profitability progress is the general direction of Shengkai Innovations' change in net profit over the period of time. It can combine multiple indicators of Shengkai Innovations, 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.
Shengkai Innovations, Inc., together with its subsidiaries, designs, manufactures, and distributes ceramic valves for industrial use in the Peoples Republic of China. The company is headquartered in Tianjin, the Peoples Republic of China. SHENGKAI INNOVATIONS operates under Industrial Distribution classification in the United States and is traded on PNK Exchange. It employs 135 people.

Shengkai Profitability Driver Comparison

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

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

Shengkai Innovations Pair Trading

Shengkai Innovations Pair Trading Analysis

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

In addition to having Shengkai Innovations 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 Cigarettes Thematic Idea Now

Cigarettes
Cigarettes Theme
Tobacco makers and distributors across globe. The Cigarettes theme has 47 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 Cigarettes Theme or any other thematic opportunities.
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Check out World Market Map 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 bureau of economic analysis.
You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

Other Consideration for investing in Shengkai Pink Sheet

If you are still planning to invest in Shengkai Innovations 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 Shengkai Innovations' history and understand the potential risks before investing.
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