Fujian Rongji Operating Margin vs. Price To Book

002474 Stock   7.67  0.70  10.04%   
Considering the key profitability indicators obtained from Fujian Rongji's historical financial statements, Fujian Rongji Software 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 Fujian Rongji's ability to earn profits and add value for shareholders.
For Fujian Rongji profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fujian Rongji to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fujian Rongji Software utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fujian Rongji's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fujian Rongji Software 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 Fujian Rongji's value and its price as these two are different measures arrived at by different means. Investors typically determine if Fujian Rongji is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fujian Rongji'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.

Fujian Rongji Software Price To Book vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Fujian Rongji's current stock value. Our valuation model uses many indicators to compare Fujian Rongji value to that of its competitors to determine the firm's financial worth.
Fujian Rongji Software is number one stock in operating margin category among its peers. It also is number one stock in price to book category among its peers fabricating about  16.11  of Price To Book per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Fujian Rongji by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Fujian Rongji'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.

Fujian Price To Book vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Fujian Rongji

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.19 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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.

Fujian Rongji

P/B

 = 

MV Per Share

BV Per Share

 = 
3.04 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.

Fujian Price To Book Comparison

Fujian Rongji is currently under evaluation in price to book category among its peers.

Fujian Rongji Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Fujian Rongji, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fujian Rongji will eventually generate negative long term returns. The profitability progress is the general direction of Fujian Rongji's change in net profit over the period of time. It can combine multiple indicators of Fujian Rongji, 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 Income-134.3 M-127.6 M
Income Before Tax-167.8 M-159.4 M
Net Income Applicable To Common Shares12 M11.4 M
Net Loss-145.6 M-138.4 M
Income Tax Expense-2 M-1.9 M
Net Loss-148.1 M-140.7 M
Total Other Income Expense Net23 M24.5 M
Net Interest Income-20.9 M-22 M
Interest Income856.6 K813.7 K
Change To Netincome19.6 M20.6 M

Fujian Profitability Driver Comparison

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

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

Fujian Rongji Pair Trading

Fujian Rongji Software Pair Trading Analysis

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

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Other Information on Investing in Fujian Stock

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