Jiangxi Sunshine Return On Equity vs. Profit Margin

001318 Stock   13.23  0.17  1.27%   
Based on the measurements of profitability obtained from Jiangxi Sunshine's financial statements, Jiangxi Sunshine Dairy 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 Jiangxi Sunshine's ability to earn profits and add value for shareholders.
For Jiangxi Sunshine profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Jiangxi Sunshine to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Jiangxi Sunshine Dairy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Jiangxi Sunshine's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Jiangxi Sunshine Dairy 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 Jiangxi Sunshine's value and its price as these two are different measures arrived at by different means. Investors typically determine if Jiangxi Sunshine is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Jiangxi Sunshine'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.

Jiangxi Sunshine Dairy Profit Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Jiangxi Sunshine's current stock value. Our valuation model uses many indicators to compare Jiangxi Sunshine value to that of its competitors to determine the firm's financial worth.
Jiangxi Sunshine Dairy is number one stock in return on equity category among its peers. It also is number one stock in profit margin category among its peers fabricating about  2.57  of Profit Margin per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Jiangxi Sunshine by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Jiangxi Sunshine'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.

Jiangxi Profit 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.

Jiangxi Sunshine

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0777
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.
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.

Jiangxi Sunshine

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.

Jiangxi Profit Margin Comparison

Jiangxi Sunshine is currently under evaluation in profit margin category among its peers.

Jiangxi Sunshine Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Jiangxi Sunshine, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Jiangxi Sunshine will eventually generate negative long term returns. The profitability progress is the general direction of Jiangxi Sunshine's change in net profit over the period of time. It can combine multiple indicators of Jiangxi Sunshine, 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
Operating Income111.5 M97.5 M
Income Before Tax121.3 M135.2 M
Total Other Income Expense Net8.3 M8.7 M
Net Income115.8 M124.2 M
Income Tax Expense7.8 M8.7 M
Net Interest Income18.5 M19.4 M
Interest Income18.6 M9.6 M
Net Income From Continuing Ops113.3 M123.7 M
Net Income Applicable To Common Shares120.7 M115.1 M
Change To NetincomeM1.9 M

Jiangxi Profitability Driver Comparison

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

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

Jiangxi Sunshine Pair Trading

Jiangxi Sunshine Dairy Pair Trading Analysis

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

In addition to having Jiangxi Sunshine 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 Housewares Thematic Idea Now

Housewares
Housewares Theme
Companies making housewares accessories and providing houseware services. The Housewares theme has 39 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 Housewares Theme or any other thematic opportunities.
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Other Information on Investing in Jiangxi Stock

To fully project Jiangxi Sunshine's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Jiangxi Sunshine Dairy 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 Jiangxi Sunshine's income statement, its balance sheet, and the statement of cash flows.
Potential Jiangxi Sunshine investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Jiangxi Sunshine investors may work on each financial statement separately, they are all related. The changes in Jiangxi Sunshine's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Jiangxi Sunshine'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.