Trip Group Operating Margin vs. Price To Book

CLV Stock  EUR 64.60  2.40  3.86%   
Considering Trip Group's profitability and operating efficiency indicators, Trip Group Limited 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 Trip Group's ability to earn profits and add value for shareholders.
For Trip Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Trip Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Trip Group Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Trip Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Trip Group Limited 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 Trip Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if Trip Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Trip Group'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.

Trip Group Limited Price To Book vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Trip Group's current stock value. Our valuation model uses many indicators to compare Trip Group value to that of its competitors to determine the firm's financial worth.
Trip Group Limited 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 . 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 Trip Group's earnings, one of the primary drivers of an investment's value.

Trip 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.

Trip Group

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(0.02) %
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.

Trip Group

P/B

 = 

MV Per Share

BV Per Share

 = 
1.41 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.

Trip Price To Book Comparison

Trip Group is currently under evaluation in price to book category among its peers.

Trip Group Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Trip Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Trip Group will eventually generate negative long term returns. The profitability progress is the general direction of Trip Group's change in net profit over the period of time. It can combine multiple indicators of Trip Group, 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.
Ctrip.com International, Ltd. operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours, and corporate travel management in China. Ctrip.com International, Ltd. was founded in 1999 and is headquartered in Shanghai, the Peoples Republic of China. CTRIP COM operates under Leisure classification in Germany and is traded on Frankfurt Stock Exchange. It employs 45100 people.

Trip Profitability Driver Comparison

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

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

Trip Group Pair Trading

Trip Group Limited Pair Trading Analysis

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

In addition to having Trip Group 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 Junk Bonds Funds Thematic Idea Now

Junk Bonds Funds
Junk Bonds Funds Theme
Funds or Etfs that invest most of their assets into speculative (junk) bonds or to other fixed income instruments with interest rates 3 to 4 percentage points above government issues. The Junk Bonds Funds theme has 37 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 Junk Bonds Funds Theme or any other thematic opportunities.
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Other Information on Investing in Trip Stock

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