China Merchants Financials
| CIHKY Stock | USD 20.84 0.66 3.27% |
China |
Understanding current and past China Merchants Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of China Merchants' financial statements are interrelated, with each one affecting the others. For example, an increase in China Merchants' assets may result in an increase in income on the income statement.
The data published in China Merchants' official financial statements usually reflect China Merchants' business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of China Merchants Bank. For example, before you start analyzing numbers published by China accountants, it's critical to develop an understanding of what China Merchants' liquidity, profitability, and earnings quality are in the context of the Financial Services space in which it operates.
Please note, the presentation of China Merchants' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, China Merchants' management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in China Merchants' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of China Merchants Bank. Please utilize our Beneish M Score to check the likelihood of China Merchants' management manipulating its earnings.
China Merchants Stock Summary
China Merchants competes with China Everbright, China Merchants, Postal Savings, China Citic, and China CITIC. China Merchants Bank Co., Ltd., together with its subsidiaries, provides various banking products and services. China Merchants Bank Co., Ltd. was founded in 1987 and is headquartered in Shenzhen, China. China Merchants operates under BanksRegional classification in the United States and is traded on OTC Exchange. It employs 103669 people.| Instrument | USA Pink Sheet View All |
| Exchange | PINK Exchange |
| ISIN | US16950T1025 |
| Business Address | China Merchants Bank |
| Sector | Financial Services |
| Industry | Banks—Regional |
| Benchmark | NYSE Composite |
| Website | www.cmbchina.com |
| Phone | 86 755 8319 8888 |
| Currency | USD - US Dollar |
You should never invest in China Merchants without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of China Pink Sheet, because this is throwing your money away. Analyzing the key information contained in China Merchants' financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.
China Merchants Key Financial Ratios
Generally speaking, China Merchants' financial ratios allow both analysts and investors to convert raw data from China Merchants' financial statements into concise, actionable information that can be used to evaluate the performance of China Merchants over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that China Merchants Bank reports annually and quarterly.China Financial Ratios Relationships
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. You can analyze the relationship between different fundamental ratios across China Merchants competition to find correlations between indicators driving China Merchants's intrinsic value. More Info.China Merchants Bank is rated third in return on equity category among related companies. It is rated fourth in return on asset category among related companies reporting about 0.09 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for China Merchants Bank is roughly 10.69 . 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. 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 China Merchants' earnings, one of the primary drivers of an investment's value.China Merchants Bank Systematic Risk
China Merchants' systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. China Merchants volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was three with a total number of output elements of fifty-eight. The Beta measures systematic risk based on how returns on China Merchants Bank correlated with the market. If Beta is less than 0 China Merchants generally moves in the opposite direction as compared to the market. If China Merchants Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one China Merchants Bank is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of China Merchants is generally in the same direction as the market. If Beta > 1 China Merchants moves generally in the same direction as, but more than the movement of the benchmark.
About China Merchants Financials
What exactly are China Merchants Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include China Merchants' income statement, its balance sheet, and the statement of cash flows. Potential China Merchants investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although China Merchants investors may use each financial statement separately, they are all related. The changes in China Merchants's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on China Merchants'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.Steps to analyze China Merchants Financials for Investing
There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as China Merchants is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of China has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it. In summary, you can determine if China Merchants' financials are consistent with your investment objective using the following steps:- Review China Merchants' balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
- Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
- Study the cash flow inflows and outflows to understand China Merchants' liquidity and solvency.
- Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
- Compare China Merchants' financials to those of its peers to see how it stacks up and identify any potential red flags.
- Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if China Merchants' stock is overvalued or undervalued.
China Merchants April 18, 2024 Opportunity Range
Along with financial statement analysis, the daily predictive indicators of China Merchants help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of China Merchants Bank. We use our internally-developed statistical techniques to arrive at the intrinsic value of China Merchants Bank based on widely used predictive technical indicators. In general, we focus on analyzing China Pink Sheet price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build China Merchants's daily price indicators and compare them against related drivers.
| Downside Deviation | 2.05 | |||
| Information Ratio | 0.1055 | |||
| Maximum Drawdown | 11.64 | |||
| Value At Risk | (3.47) | |||
| Potential Upside | 5.72 |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in China Merchants Bank. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in industry. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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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.
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