China Merchants Cash And Equivalents vs. Net Income
| CMHHY Stock | USD 15.34 0.61 3.82% |
For China Merchants profitability analysis, we use financial ratios and fundamental drivers that measure the ability of China Merchants to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well China Merchants Port utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between China Merchants's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of China Merchants Port over time as well as its relative position and ranking within its peers.
China |
China Merchants Port Net Income vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining China Merchants's current stock value. Our valuation model uses many indicators to compare China Merchants value to that of its competitors to determine the firm's financial worth. China Merchants Port is rated fourth in cash and equivalents category among its peers. It is rated below average in net income category among its peers making up about 0.94 of Net Income per Cash And Equivalents. The ratio of Cash And Equivalents to Net Income for China Merchants Port is roughly 1.06 . Comparative valuation analysis is a catch-all model that can be used if you cannot value China Merchants by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for China Merchants' Pink Sheet. 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.China Net Income vs. Cash And Equivalents
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
China Merchants |
| = | 8.86 B |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
China Merchants |
| = | 8.37 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
China Net Income Comparison
China Merchants is currently under evaluation in net income category among its peers.
China Merchants Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in China Merchants, profitability is also one of the essential criteria for including it into their portfolios because, without profit, China Merchants will eventually generate negative long term returns. The profitability progress is the general direction of China Merchants' change in net profit over the period of time. It can combine multiple indicators of China Merchants, 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.
China Merchants Port Holdings Company Limited, an investment holding company, operates as a port operator in Mainland China, Hong Kong, Taiwan, and internationally. China Merchants Port Holdings Company Limited is considered as a Red Chip company due to its listing on the Hong Kong Stock Exchange. China Merchants operates under Marine Shipping classification in the United States and is traded on OTC Exchange. It employs 8562 people.
China Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on China Merchants. 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 China Merchants 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 China Merchants' important profitability drivers and their relationship over time.
Use China Merchants 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 China Merchants 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 China Merchants will appreciate offsetting losses from the drop in the long position's value.China Merchants Pair Trading
China Merchants Port Pair Trading Analysis
The ability to find closely correlated positions to China Merchants could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace China Merchants 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 China Merchants - 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 China Merchants Port to buy it.
The correlation of China Merchants 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 China Merchants moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if China Merchants Port 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 China Merchants 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 China Merchants position
In addition to having China Merchants 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 Utilities - Regulated Electric Thematic Idea Now
Utilities - Regulated Electric
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Utilities - Regulated Electric theme has 7 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 Utilities - Regulated Electric Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for China Pink Sheet Analysis
When running China Merchants' price analysis, check to measure China Merchants' 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 China Merchants is operating at the current time. Most of China Merchants' value examination focuses on studying past and present price action to predict the probability of China Merchants' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move China Merchants' price. Additionally, you may evaluate how the addition of China Merchants to your portfolios can decrease your overall portfolio volatility.