Sunlands Technology Profitability Analysis
| STG Stock | USD 8.50 0.20 2.41% |
Net Income | First Reported 2015-12-31 | Previous Quarter 155.2 M | Current Value 155.2 M | Quarterly Volatility 171.6 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.65 | 0.877 |
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For Sunlands Technology profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sunlands Technology to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sunlands Technology Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sunlands Technology's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sunlands Technology Group over time as well as its relative position and ranking within its peers.
Sunlands |
Is Sunlands Technology's industry 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 Sunlands Technology. If investors know Sunlands 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 Sunlands Technology 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 (0.13) | Earnings Share 6.43 | Revenue Per Share 156.504 | Quarterly Revenue Growth (0.06) | Return On Assets 0.1635 |
The market value of Sunlands Technology is measured differently than its book value, which is the value of Sunlands that is recorded on the company's balance sheet. Investors also form their own opinion of Sunlands Technology's value that differs from its market value or its book value, called intrinsic value, which is Sunlands Technology'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 Sunlands Technology's market value can be influenced by many factors that don't directly affect Sunlands Technology'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 Sunlands Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sunlands Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sunlands Technology'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.
Sunlands Technology Profit Margin vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Sunlands Technology's current stock value. Our valuation model uses many indicators to compare Sunlands Technology value to that of its competitors to determine the firm's financial worth. Sunlands Technology Group is rated third in return on asset category among related companies. It is currently regarded as top stock in profit margin category among related companies fabricating about 1.81 of Profit Margin per Return On Asset. At this time, Sunlands Technology's Net Profit Margin is most likely to increase slightly in the upcoming years.Comparative valuation analysis is a catch-all model that can be used if you cannot value Sunlands Technology by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Sunlands Technology's Stock. 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. 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 Sunlands Technology's earnings, one of the primary drivers of an investment's value.Sunlands Profit Margin vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Sunlands Technology |
| = | 0.16 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Sunlands Technology |
| = | 0.30 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Sunlands Profit Margin Comparison
Sunlands Technology is currently under evaluation in profit margin category among related companies.
Sunlands Technology Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Sunlands Technology, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sunlands Technology will eventually generate negative long term returns. The profitability progress is the general direction of Sunlands Technology's change in net profit over the period of time. It can combine multiple indicators of Sunlands Technology, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 143.3 M | 84.1 M | |
| Interest Income | 28.8 M | 23.4 M | |
| Operating Income | 574.9 M | 603.6 M | |
| Net Income From Continuing Ops | 666.6 M | 699.9 M | |
| Income Before Tax | 676.1 M | 709.9 M | |
| Non Operating Income Net Other | 0.00 | 0.00 | |
| Total Other Income Expense Net | 77.8 M | 62.6 M | |
| Net Income Applicable To Common Shares | 740.6 M | 777.6 M | |
| Net Income | 640.8 M | 672.9 M | |
| Income Tax Expense | 25.2 M | 13.7 M | |
| Net Interest Income | 20.4 M | 17.7 M | |
| Change To Netincome | 32.8 M | 31.2 M | |
| Net Income Per Share | 46.44 | 48.76 | |
| Income Quality | 0.22 | 0.23 | |
| Net Income Per E B T | 0.95 | 1.11 |
Sunlands Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Sunlands Technology. 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 Sunlands Technology 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 Sunlands Technology's important profitability drivers and their relationship over time.
Sunlands Technology Profitability Trends
Sunlands Technology profitability trend refers to the progression of profit or loss within a business. An upward trend means that Sunlands Technology's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Sunlands Technology's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Sunlands Technology Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Sunlands Technology different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Sunlands Technology in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Sunlands Technology's future profitability.
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Use Sunlands Technology 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 Sunlands Technology 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 Sunlands Technology will appreciate offsetting losses from the drop in the long position's value.Sunlands Technology Pair Trading
Sunlands Technology Group Pair Trading Analysis
The ability to find closely correlated positions to Sunlands Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sunlands Technology 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 Sunlands Technology - 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 Sunlands Technology Group to buy it.
The correlation of Sunlands Technology 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 Sunlands Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sunlands Technology 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 Sunlands Technology 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 Sunlands Technology position
In addition to having Sunlands Technology 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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Companies that provide goods across residential, commercial and industrial construction such as machinery, tools, or lumber production. The Manufacturing theme has 20 constituents at this time.
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When running Sunlands Technology's price analysis, check to measure Sunlands Technology'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 Sunlands Technology is operating at the current time. Most of Sunlands Technology's value examination focuses on studying past and present price action to predict the probability of Sunlands Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sunlands Technology's price. Additionally, you may evaluate how the addition of Sunlands Technology to your portfolios can decrease your overall portfolio volatility.
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To fully project Sunlands Technology's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sunlands Technology 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 Sunlands Technology's income statement, its balance sheet, and the statement of cash flows.