WuXi AppTec Revenue vs. Profit Margin

WX8 Stock  EUR 5.50  0.15  2.80%   
Based on the measurements of profitability obtained from WuXi AppTec's financial statements, WuXi AppTec Co 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 WuXi AppTec's ability to earn profits and add value for shareholders.
For WuXi AppTec profitability analysis, we use financial ratios and fundamental drivers that measure the ability of WuXi AppTec to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well WuXi AppTec Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between WuXi AppTec's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of WuXi AppTec Co over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between WuXi AppTec's value and its price as these two are different measures arrived at by different means. Investors typically determine if WuXi AppTec is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, WuXi AppTec'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.

WuXi AppTec Profit Margin vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining WuXi AppTec's current stock value. Our valuation model uses many indicators to compare WuXi AppTec value to that of its competitors to determine the firm's financial worth.
WuXi AppTec Co is rated first in revenue category among its peers. It is rated first in profit margin category among its peers . The ratio of Revenue to Profit Margin for WuXi AppTec Co is about  89,357,725,825 . 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 WuXi AppTec's earnings, one of the primary drivers of an investment's value.

WuXi Revenue vs. Competition

WuXi AppTec Co is rated first in revenue category among its peers. Market size based on revenue of Diagnostics & Research industry is at this time estimated at about 1.3 Trillion. WuXi AppTec claims roughly 22.9 Billion in revenue contributing just under 2% to equities under Diagnostics & Research industry.

WuXi Profit Margin vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

WuXi AppTec

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
22.9 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
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.

WuXi AppTec

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.26 %
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.

WuXi Profit Margin Comparison

WuXi AppTec is currently under evaluation in profit margin category among its peers.

WuXi AppTec Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in WuXi AppTec, profitability is also one of the essential criteria for including it into their portfolios because, without profit, WuXi AppTec will eventually generate negative long term returns. The profitability progress is the general direction of WuXi AppTec's change in net profit over the period of time. It can combine multiple indicators of WuXi AppTec, 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.
WuXi AppTec Co., Ltd., an investment holding company, provides research, development, and manufacturing services to discover, develop, and manufacture small molecule drugs, and cell and gene therapies in the Peoples Republic of China, rest of Asia, the United States, Europe, and internationally. WuXi AppTec Co., Ltd. was founded in 2000 and is headquartered in Shanghai, the Peoples Republic of China. WUXI APPTEC operates under Diagnostics Research classification in Germany and is traded on Frankfurt Stock Exchange. It employs 27272 people.

WuXi Profitability Driver Comparison

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

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

WuXi AppTec Pair Trading

WuXi AppTec Co Pair Trading Analysis

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

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Other Information on Investing in WuXi Stock

To fully project WuXi AppTec's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of WuXi AppTec 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 WuXi AppTec's income statement, its balance sheet, and the statement of cash flows.
Potential WuXi AppTec investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although WuXi AppTec investors may work on each financial statement separately, they are all related. The changes in WuXi AppTec's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on WuXi AppTec's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.