Euro Tech Gross Profit vs. Current Valuation

CLWT Stock  USD 1.50  0.03  1.96%   
Considering the key profitability indicators obtained from Euro Tech's historical financial statements, Euro Tech Holdings is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in January. Profitability indicators assess Euro Tech's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
1997-03-31
Previous Quarter
1.2 M
Current Value
1.2 M
Quarterly Volatility
2.3 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
EV To Sales is likely to gain to 0.41 in 2024, whereas Price To Sales Ratio is likely to drop 0.66 in 2024. At this time, Euro Tech's Income Before Tax is comparatively stable compared to the past year. Total Other Income Expense Net is likely to gain to about 2 M in 2024, whereas Interest Income is likely to drop slightly above 28.1 K in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.190.2152
Fairly Down
Pretty Stable
For Euro Tech profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Euro Tech to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Euro Tech Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Euro Tech's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Euro Tech Holdings over time as well as its relative position and ranking within its peers.
  
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Is Trading Companies & Distributors space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Euro Tech. If investors know Euro will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Euro Tech listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
2.939
Earnings Share
0.28
Revenue Per Share
2.322
Quarterly Revenue Growth
0.215
Return On Assets
(0.01)
The market value of Euro Tech Holdings is measured differently than its book value, which is the value of Euro that is recorded on the company's balance sheet. Investors also form their own opinion of Euro Tech's value that differs from its market value or its book value, called intrinsic value, which is Euro Tech's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Euro Tech's market value can be influenced by many factors that don't directly affect Euro Tech's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Euro Tech's value and its price as these two are different measures arrived at by different means. Investors typically determine if Euro Tech is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Euro Tech'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.

Euro Tech Holdings Current Valuation vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Euro Tech's current stock value. Our valuation model uses many indicators to compare Euro Tech value to that of its competitors to determine the firm's financial worth.
Euro Tech Holdings is number one stock in gross profit category among its peers. It is rated second in current valuation category among its peers reporting about  1.30  of Current Valuation per Gross Profit. At this time, Euro Tech's Gross Profit is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Euro Tech by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Euro Current Valuation vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Euro Tech

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
5.7 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Euro Tech

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
7.38 M
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Euro Current Valuation vs Competition

Euro Tech Holdings is rated second in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is currently estimated at about 380.95 Million. Euro Tech claims roughly 7.38 Million in current valuation contributing just under 2% to equities under Industrials industry.

Euro Tech Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Euro Tech, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Euro Tech will eventually generate negative long term returns. The profitability progress is the general direction of Euro Tech's change in net profit over the period of time. It can combine multiple indicators of Euro Tech, 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
Accumulated Other Comprehensive Income1.1 M586.9 K
Operating Income-249 K-236.6 K
Income Before Tax1.7 M1.8 M
Total Other Income Expense Net1.9 MM
Net Income1.8 M1.9 M
Income Tax Expense45 K67.9 K
Net Income Applicable To Common Shares890.1 K934.6 K
Net Income From Continuing Ops1.6 M1.7 M
Interest Income37 K28.1 K
Net Interest Income30 K27.6 K
Change To Netincome-104.4 K-109.6 K
Net Income Per Share 0.24  0.25 
Income Quality(0.04)(0.04)
Net Income Per E B T 1.08  1.13 

Euro Profitability Driver Comparison

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

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

Euro Tech Pair Trading

Euro Tech Holdings Pair Trading Analysis

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

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Alternative Energy
Alternative Energy Theme
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Additional Tools for Euro Stock Analysis

When running Euro Tech's price analysis, check to measure Euro Tech'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 Euro Tech is operating at the current time. Most of Euro Tech's value examination focuses on studying past and present price action to predict the probability of Euro Tech's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Euro Tech's price. Additionally, you may evaluate how the addition of Euro Tech to your portfolios can decrease your overall portfolio volatility.