TongFu Microelectronics Price To Book vs. Return On Equity
| 002156 Stock | 30.18 0.84 2.86% |
For TongFu Microelectronics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of TongFu Microelectronics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well TongFu Microelectronics Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between TongFu Microelectronics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of TongFu Microelectronics Co over time as well as its relative position and ranking within its peers.
TongFu |
TongFu Microelectronics Return On Equity vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining TongFu Microelectronics's current stock value. Our valuation model uses many indicators to compare TongFu Microelectronics value to that of its competitors to determine the firm's financial worth. TongFu Microelectronics Co is number one stock in price to book category among its peers. It is rated below average in return on equity category among its peers reporting about 0.02 of Return On Equity per Price To Book. The ratio of Price To Book to Return On Equity for TongFu Microelectronics Co is roughly 52.07 . Comparative valuation analysis is a catch-all model that can be used if you cannot value TongFu Microelectronics by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for TongFu Microelectronics' 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.TongFu Return On Equity vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
TongFu Microelectronics |
| = | 3.17 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.
TongFu Microelectronics |
| = | 0.0608 |
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.
TongFu Return On Equity Comparison
TongFu Microelectronics is currently under evaluation in return on equity category among its peers.
TongFu Microelectronics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in TongFu Microelectronics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, TongFu Microelectronics will eventually generate negative long term returns. The profitability progress is the general direction of TongFu Microelectronics' change in net profit over the period of time. It can combine multiple indicators of TongFu Microelectronics, 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 | ||
| Operating Income | 990.6 M | 1 B | |
| Income Before Tax | 241.7 M | 197.9 M | |
| Net Income Applicable To Common Shares | 577.3 M | 606.2 M | |
| Net Income | 169.4 M | 183 M | |
| Income Tax Expense | -55.6 M | -52.8 M | |
| Net Income From Continuing Ops | 216 M | 351.2 M | |
| Total Other Income Expense Net | 4.8 M | 4.5 M | |
| Net Interest Income | -553.9 M | -526.2 M | |
| Interest Income | 54.2 M | 57 M | |
| Change To Netincome | 816.9 M | 857.7 M |
TongFu Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on TongFu Microelectronics. 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 TongFu Microelectronics 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 TongFu Microelectronics' important profitability drivers and their relationship over time.
Use TongFu Microelectronics 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 TongFu Microelectronics 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 TongFu Microelectronics will appreciate offsetting losses from the drop in the long position's value.TongFu Microelectronics Pair Trading
TongFu Microelectronics Co Pair Trading Analysis
The ability to find closely correlated positions to TongFu Microelectronics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace TongFu Microelectronics 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 TongFu Microelectronics - 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 TongFu Microelectronics Co to buy it.
The correlation of TongFu Microelectronics 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 TongFu Microelectronics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if TongFu Microelectronics 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 TongFu Microelectronics 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 TongFu Microelectronics position
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Other Information on Investing in TongFu Stock
To fully project TongFu Microelectronics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of TongFu Microelectronics 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 TongFu Microelectronics' income statement, its balance sheet, and the statement of cash flows.