Changchun Faway Price To Sales vs. Profit Margin

600742 Stock   8.92  0.40  4.29%   
Based on the key profitability measurements obtained from Changchun Faway's financial statements, Changchun Faway Automobile 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 Changchun Faway's ability to earn profits and add value for shareholders.
For Changchun Faway profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Changchun Faway to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Changchun Faway Automobile utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Changchun Faway's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Changchun Faway Automobile 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 Faway's value and its price as these two are different measures arrived at by different means. Investors typically determine if Changchun Faway is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Changchun Faway'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 Faway Auto Profit Margin vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Changchun Faway's current stock value. Our valuation model uses many indicators to compare Changchun Faway value to that of its competitors to determine the firm's financial worth.
Changchun Faway Automobile is rated fourth in price to sales category among its peers. It is number one stock in profit margin category among its peers fabricating about  0.07  of Profit Margin per Price To Sales. The ratio of Price To Sales to Profit Margin for Changchun Faway Automobile is roughly  13.56 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Changchun Faway by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Changchun Faway'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 Profit Margin vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Changchun Faway

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.33 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Changchun Faway

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.02 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Changchun Profit Margin Comparison

Changchun Faway is currently under evaluation in profit margin category among its peers.

Changchun Faway Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Changchun Faway, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Changchun Faway will eventually generate negative long term returns. The profitability progress is the general direction of Changchun Faway's change in net profit over the period of time. It can combine multiple indicators of Changchun Faway, 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 Income578.8 M607.7 M
Income Before Tax909 M526.5 M
Net Income Applicable To Common Shares757.7 M795.6 M
Net Income520.5 M386.2 M
Income Tax Expense138.1 M145 M
Net Income From Continuing Ops765 M784.4 M
Total Other Income Expense Net520.3 M450 M
Net Interest Income66 M37 M
Interest Income104.8 M60.5 M
Change To Netincome-520.8 M-546.9 M

Changchun Profitability Driver Comparison

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

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

Changchun Faway Pair Trading

Changchun Faway Automobile Pair Trading Analysis

The ability to find closely correlated positions to Changchun Faway 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 Faway 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 Faway - 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 Faway Automobile to buy it.
The correlation of Changchun Faway 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 Faway moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Changchun Faway Auto 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 Faway 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 Faway position

In addition to having Changchun Faway 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.

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Run Air Thematic Idea Now

Air
Air Theme
Companies specializing in air services and air delivery. The Air theme has 43 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 Air Theme or any other thematic opportunities.
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Other Information on Investing in Changchun Stock

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