Autohome Return On Equity vs. Total Debt

8AHB Stock  EUR 25.80  0.20  0.77%   
Based on the measurements of profitability obtained from Autohome's financial statements, Autohome ADR may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Autohome's ability to earn profits and add value for shareholders.
For Autohome profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Autohome to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Autohome ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Autohome's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Autohome ADR over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in Autohome Stock please use our How to Invest in Autohome guide.
Please note, there is a significant difference between Autohome's value and its price as these two are different measures arrived at by different means. Investors typically determine if Autohome is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Autohome'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.

Autohome ADR Total Debt vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Autohome's current stock value. Our valuation model uses many indicators to compare Autohome value to that of its competitors to determine the firm's financial worth.
Autohome ADR is number one stock in return on equity category among its peers. It is rated fifth in total debt category among its peers making up about  2,724,596,774  of Total Debt per Return On Equity. 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 Autohome's earnings, one of the primary drivers of an investment's value.

Autohome Total Debt 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.

Autohome

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0744
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.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.

Autohome

Total Debt

 = 

Bonds

+

Notes

 = 
202.71 M
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.

Autohome Total Debt vs Competition

Autohome ADR is rated fifth in total debt category among its peers. Total debt of Internet Content & Information industry is presently estimated at about 14.04 Billion. Autohome claims roughly 202.71 Million in total debt contributing just under 2% to equities under Internet Content & Information industry.
Total debt  Workforce  Revenue  Capitalization  Valuation

Autohome Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Autohome, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Autohome will eventually generate negative long term returns. The profitability progress is the general direction of Autohome's change in net profit over the period of time. It can combine multiple indicators of Autohome, 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.
Autohome Inc. operates as an online destination for automobile consumers in the Peoples Republic of China. Autohome Inc. was incorporated in 2008 and is headquartered in Beijing, the Peoples Republic of China. AUTOHOME operates under Internet Content Information classification in Germany and is traded on Frankfurt Stock Exchange. It employs 6152 people.

Autohome Profitability Driver Comparison

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

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

Autohome Pair Trading

Autohome ADR Pair Trading Analysis

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

In addition to having Autohome 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 Banking Thematic Idea Now

Banking
Banking Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Banking theme has 61 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 Banking Theme or any other thematic opportunities.
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Other Information on Investing in Autohome Stock

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