Cathay Financial Price To Book vs. Operating Margin
| 2882 Stock | TWD 68.40 0.20 0.29% |
For Cathay Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cathay Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cathay Financial Holding utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cathay Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cathay Financial Holding over time as well as its relative position and ranking within its peers.
Cathay |
Cathay Financial Holding Operating Margin vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cathay Financial's current stock value. Our valuation model uses many indicators to compare Cathay Financial value to that of its competitors to determine the firm's financial worth. Cathay Financial Holding is number one stock in price to book category among its peers. It is rated below average in operating margin category among its peers . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Cathay Financial's earnings, one of the primary drivers of an investment's value.Cathay Operating Margin 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.
Cathay Financial |
| = | 1.96 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.
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.
Cathay Financial |
| = | (0.42) % |
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.
Cathay Operating Margin Comparison
Cathay Financial is currently under evaluation in operating margin category among its peers.
Cathay Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cathay Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cathay Financial will eventually generate negative long term returns. The profitability progress is the general direction of Cathay Financial's change in net profit over the period of time. It can combine multiple indicators of Cathay Financial, 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.
Cathay Financial Holding Co., Ltd., through its subsidiaries, provides various financial services in Taiwan. Cathay Financial Holding Co., Ltd. was founded in 2001 and is based in Taipei City, Taiwan. CATHAY FINANCIAL operates under Asset Management classification in Taiwan and is traded on Taiwan Stock Exchange. It employs 54520 people.
Cathay Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cathay Financial. 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 Cathay Financial 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 Cathay Financial's important profitability drivers and their relationship over time.
Use Cathay Financial 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 Cathay Financial 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 Cathay Financial will appreciate offsetting losses from the drop in the long position's value.Cathay Financial Pair Trading
Cathay Financial Holding Pair Trading Analysis
The ability to find closely correlated positions to Cathay Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cathay Financial 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 Cathay Financial - 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 Cathay Financial Holding to buy it.
The correlation of Cathay Financial 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 Cathay Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cathay Financial Holding 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 Cathay Financial 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 Cathay Financial position
In addition to having Cathay Financial 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 Aggressive Defence Thematic Idea Now
Aggressive Defence
Macroaxis small cap, aggressive-outlook picks designed for investors that are willing to accept higher levels of risk to hedge exposure to above-average market volatility. The Aggressive Defence theme has 50 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 Aggressive Defence Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for Cathay Stock Analysis
When running Cathay Financial's price analysis, check to measure Cathay Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cathay Financial is operating at the current time. Most of Cathay Financial's value examination focuses on studying past and present price action to predict the probability of Cathay Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cathay Financial's price. Additionally, you may evaluate how the addition of Cathay Financial to your portfolios can decrease your overall portfolio volatility.