Changchun Profitability Analysis

002338 Stock   43.68  0.37  0.84%   
Considering Changchun's profitability and operating efficiency indicators, Changchun UP Optotech may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Changchun's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2018-09-30
Previous Quarter
17 M
Current Value
11.3 M
Quarterly Volatility
7.1 M
 
Covid
For Changchun profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Changchun to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Changchun UP Optotech utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Changchun's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Changchun UP Optotech 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 Changchun's value and its price as these two are different measures arrived at by different means. Investors typically determine if Changchun is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Changchun'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.

Changchun UP Optotech Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Changchun's current stock value. Our valuation model uses many indicators to compare Changchun value to that of its competitors to determine the firm's financial worth.
Changchun UP Optotech is rated second in return on equity category among its peers. It also is rated second in return on asset category among its peers reporting about  0.08  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Changchun UP Optotech is roughly  12.74 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Changchun by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Changchun'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.

Changchun Return On Asset 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.

Changchun

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0535
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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Changchun

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0042
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Changchun Return On Asset Comparison

Changchun is currently under evaluation in return on asset category among its peers.

Changchun Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Changchun, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Changchun will eventually generate negative long term returns. The profitability progress is the general direction of Changchun's change in net profit over the period of time. It can combine multiple indicators of Changchun, 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 Income96.3 M50.6 M
Income Before Tax127.1 M68.9 M
Net Income Applicable To Common Shares94.1 M53.5 M
Net Income86.6 M56.1 M
Income Tax Expense-2.1 M-2 M
Net Income From Continuing Ops123.3 M72.8 M
Total Other Income Expense Net-496.5 K-471.7 K
Net Interest Income-5.9 M-5.6 M
Interest Income1.1 M857.7 K
Change To Netincome-41.1 M-39 M

Changchun Profitability Driver Comparison

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

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

Changchun Pair Trading

Changchun UP Optotech Pair Trading Analysis

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

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Other Information on Investing in Changchun Stock

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