Tongxin International Return On Equity vs. Current Valuation
| TXIC Stock | USD 0.0001 0.00 0.00% |
For Tongxin International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Tongxin International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Tongxin International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Tongxin International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Tongxin International over time as well as its relative position and ranking within its peers.
Tongxin |
Tongxin International Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Tongxin International's current stock value. Our valuation model uses many indicators to compare Tongxin International value to that of its competitors to determine the firm's financial worth. Tongxin International is rated fourth in return on equity category among its peers. It is rated below average in current valuation category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Tongxin International by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Tongxin International's 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.Tongxin Current Valuation 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.
Tongxin International |
| = | -0.28 |
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.
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.
Tongxin International |
| = | 363.21 K |
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.
Tongxin Current Valuation vs Competition
Tongxin International is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Discretionary industry is at this time estimated at about 72.24 Billion. Tongxin International adds roughly 363,213 in current valuation claiming only tiny portion of stocks in Consumer Discretionary industry.
Tongxin International Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Tongxin International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Tongxin International will eventually generate negative long term returns. The profitability progress is the general direction of Tongxin International's change in net profit over the period of time. It can combine multiple indicators of Tongxin International, 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.
Tongxin International, Ltd., through its subsidiary, Hunan Tongxin Enterprise Co Ltd., designs, manufactures, assembles, and sells engineered vehicle body structures in China. The company was founded in 1984 and is based in Los Angeles, California. TONGXIN INTERNATIONAL is traded on PNK Exchange in the United States.
Tongxin Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Tongxin International. 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 Tongxin International 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 Tongxin International's important profitability drivers and their relationship over time.
Use Tongxin International 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 Tongxin International 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 Tongxin International will appreciate offsetting losses from the drop in the long position's value.Tongxin International Pair Trading
Tongxin International Pair Trading Analysis
The ability to find closely correlated positions to Tongxin International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Tongxin International 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 Tongxin International - 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 Tongxin International to buy it.
The correlation of Tongxin International 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 Tongxin International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Tongxin International 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 Tongxin International 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 Tongxin International position
In addition to having Tongxin International 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?
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Other Information on Investing in Tongxin Pink Sheet
To fully project Tongxin International's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Tongxin International 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 Tongxin International's income statement, its balance sheet, and the statement of cash flows.