Hong Leong Return On Equity vs. Z Score
| 5819 Stock | 20.68 0.12 0.58% |
For Hong Leong profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hong Leong to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hong Leong Bank utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hong Leong's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hong Leong Bank over time as well as its relative position and ranking within its peers.
Hong |
Hong Leong Bank Z Score vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Hong Leong's current stock value. Our valuation model uses many indicators to compare Hong Leong value to that of its competitors to determine the firm's financial worth. Hong Leong Bank is rated second in return on equity category among its peers. It is number one stock in z score category among its peers totaling about 0.43 of Z Score per Return On Equity. The ratio of Return On Equity to Z Score for Hong Leong Bank is roughly 2.35 . 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 Hong Leong's earnings, one of the primary drivers of an investment's value.Hong Z Score 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.
Hong Leong |
| = | 11.26 |
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.
Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Hong Leong |
| = | 4.8 |
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
Hong Z Score Comparison
Hong Leong is currently under evaluation in z score category among its peers.
Hong Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Hong Leong. 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 Hong Leong 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 Hong Leong's important profitability drivers and their relationship over time.
Use Hong Leong 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 Hong Leong 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 Hong Leong will appreciate offsetting losses from the drop in the long position's value.Hong Leong Pair Trading
Hong Leong Bank Pair Trading Analysis
The ability to find closely correlated positions to Hong Leong could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hong Leong 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 Hong Leong - 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 Hong Leong Bank to buy it.
The correlation of Hong Leong 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 Hong Leong moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hong Leong Bank 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 Hong Leong 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 Hong Leong position
In addition to having Hong Leong 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 Drugs Thematic Idea Now
Drugs
Companies involved in medical and pharmaceutical drug research, manufacturing, and delivery. The Drugs theme has 45 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 Drugs Theme or any other thematic opportunities.
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Other Information on Investing in Hong Stock
To fully project Hong Leong's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hong Leong Bank 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 Hong Leong's income statement, its balance sheet, and the statement of cash flows.