Weichai Heavy Book Value Per Share vs. Cash Flow From Operations
| 000880 Stock | 13.09 1.19 10.00% |
For Weichai Heavy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Weichai Heavy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Weichai Heavy Machinery utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Weichai Heavy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Weichai Heavy Machinery over time as well as its relative position and ranking within its peers.
Weichai |
Weichai Heavy Machinery Cash Flow From Operations vs. Book Value Per Share Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Weichai Heavy's current stock value. Our valuation model uses many indicators to compare Weichai Heavy value to that of its competitors to determine the firm's financial worth. Weichai Heavy Machinery is number one stock in book value per share category among its peers. It also is number one stock in cash flow from operations category among its peers making about 75,293,721 of Cash Flow From Operations per Book Value Per Share. Comparative valuation analysis is a catch-all model that can be used if you cannot value Weichai Heavy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Weichai Heavy's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Weichai Cash Flow From Operations vs. Book Value Per Share
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
Weichai Heavy |
| = | 6.12 X |
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.
Weichai Heavy |
| = | 461.17 M |
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.
Weichai Cash Flow From Operations Comparison
Weichai Heavy is currently under evaluation in cash flow from operations category among its peers.
Weichai Heavy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Weichai Heavy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Weichai Heavy will eventually generate negative long term returns. The profitability progress is the general direction of Weichai Heavy's change in net profit over the period of time. It can combine multiple indicators of Weichai Heavy, 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 | 493.7 M | 509.5 M | |
| Operating Income | 68 M | 55.3 M | |
| Income Before Tax | 153.7 M | 103.3 M | |
| Net Income Applicable To Common Shares | 157.3 M | 85.7 M | |
| Net Income | 166.5 M | 93.6 M | |
| Income Tax Expense | 1.5 M | 1.5 M | |
| Net Income From Continuing Ops | 166.5 M | 92.1 M | |
| Total Other Income Expense Net | 45 M | 44.7 M | |
| Net Interest Income | 33.6 M | 18.8 M | |
| Interest Income | 33.7 M | 19.3 M | |
| Change To Netincome | -76.1 M | -72.2 M |
Weichai Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Weichai Heavy. 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 Weichai Heavy 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 Weichai Heavy's important profitability drivers and their relationship over time.
Use Weichai Heavy 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 Weichai Heavy 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 Weichai Heavy will appreciate offsetting losses from the drop in the long position's value.Weichai Heavy Pair Trading
Weichai Heavy Machinery Pair Trading Analysis
The ability to find closely correlated positions to Weichai Heavy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Weichai Heavy 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 Weichai Heavy - 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 Weichai Heavy Machinery to buy it.
The correlation of Weichai Heavy 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 Weichai Heavy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Weichai Heavy Machinery 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 Weichai Heavy 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 Weichai Heavy position
In addition to having Weichai Heavy 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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Airlines
Domestic and international airlines and airline services. The Airlines theme has 39 constituents at this time.
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Other Information on Investing in Weichai Stock
To fully project Weichai Heavy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Weichai Heavy Machinery 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 Weichai Heavy's income statement, its balance sheet, and the statement of cash flows.