Emeren Return On Equity vs. Gross Profit

SOL Stock  USD 1.87  0.16  7.88%   
Considering Emeren's profitability and operating efficiency indicators, Emeren Group may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess Emeren's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
(0.01)
Current Value
(0.01)
Quarterly Volatility
0.44348894
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Emeren's Days Sales Outstanding is quite stable compared to the past year. Sales General And Administrative To Revenue is expected to rise to 0.26 this year, although the value of EV To Sales will most likely fall to 1.30. At this time, Emeren's Income Tax Expense is quite stable compared to the past year. Income Quality is expected to rise to 7.74 this year, although the value of Operating Income will most likely fall to (947.1 K).
For Emeren profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Emeren to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Emeren Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Emeren's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Emeren Group over time as well as its relative position and ranking within its peers.
  
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Is Construction & Engineering 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 Emeren. If investors know Emeren 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 Emeren 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
(0.92)
Earnings Share
(0.05)
Revenue Per Share
1.915
Quarterly Revenue Growth
(0.11)
Return On Assets
(0.01)
The market value of Emeren Group is measured differently than its book value, which is the value of Emeren that is recorded on the company's balance sheet. Investors also form their own opinion of Emeren's value that differs from its market value or its book value, called intrinsic value, which is Emeren'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 Emeren's market value can be influenced by many factors that don't directly affect Emeren'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 Emeren's value and its price as these two are different measures arrived at by different means. Investors typically determine if Emeren is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Emeren'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.

Emeren Group Gross Profit vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Emeren's current stock value. Our valuation model uses many indicators to compare Emeren value to that of its competitors to determine the firm's financial worth.
Emeren Group is currently regarded as top stock in return on equity category among its peers. It is rated third in gross profit category among its peers . At this time, Emeren's Return On Equity is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Emeren 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.

Emeren Gross Profit 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.

Emeren

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.0475
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.
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.

Emeren

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
24.48 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.

Emeren Gross Profit Comparison

Emeren is currently under evaluation in gross profit category among its peers.

Emeren Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Emeren, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Emeren will eventually generate negative long term returns. The profitability progress is the general direction of Emeren's change in net profit over the period of time. It can combine multiple indicators of Emeren, 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 Income-6.5 M-6.1 M
Operating Income-902 K-947.1 K
Income Before Tax-9.2 M-9.7 M
Total Other Income Expense Net-8.3 M-8.7 M
Net Loss-9.3 M-9.8 M
Income Tax Expense2.6 M2.7 M
Interest Income1.8 M1.7 M
Net Loss-5.4 M-5.1 M
Net Interest Income-411 K-431.6 K
Net Loss-5.4 M-5.2 M
Change To Netincome-43.9 M-41.8 M
Net Loss(0.06)(0.06)
Income Quality 7.37  7.74 
Net Income Per E B T 1.10  1.66 

Emeren Profitability Driver Comparison

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

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

Emeren Pair Trading

Emeren Group Pair Trading Analysis

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

In addition to having Emeren 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 Management Thematic Idea Now

Management
Management Theme
Companies providing management services to businesses. The Management theme has 41 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 Management Theme or any other thematic opportunities.
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When determining whether Emeren Group is a strong investment it is important to analyze Emeren's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Emeren's future performance. For an informed investment choice regarding Emeren Stock, refer to the following important reports:
Check out World Market Map.
You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
To fully project Emeren's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Emeren Group 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 Emeren's income statement, its balance sheet, and the statement of cash flows.
Potential Emeren investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Emeren investors may work on each financial statement separately, they are all related. The changes in Emeren's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Emeren'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.