China Finance Profitability Analysis

JRJC -  USA Stock  

USD 5.14  0.01  0.19%

For China Finance profitability analysis, we use financial ratios and fundamental drivers that measure the ability of China Finance to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well China Finance Online utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between China Finance's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of China Finance Online over time as well as its relative position and ranking within its peers. Please see Risk vs Return Analysis.

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China Finance Price to Sales Ratio is projected to slightly decrease based on the last few years of reporting. The past year's Price to Sales Ratio was at 0.46. The current year Sales per Share is expected to grow to 20.05, whereas Return on Sales is forecasted to decline to (0.29) . The current year Accumulated Other Comprehensive Income is expected to grow to about 6.9 M, whereas Consolidated Income is forecasted to decline to (12.2 M).

China Finance Revenues

45.29 MillionShare
The market value of China Finance Online is measured differently than its book value, which is the value of China that is recorded on the company's balance sheet. Investors also form their own opinion of China Finance's value that differs from its market value or its book value, called intrinsic value, which is China Finance'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 China Finance's market value can be influenced by many factors that don't directly affect China Finance Online underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between China Finance's value and its price as these two are different measures arrived at by different means. Investors typically determine China Finance value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Finance'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.

China Finance Online Return On Equity vs. Earnings Per Share Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining China Finance's current stock value. Our valuation model uses many indicators to compare China Finance value to that of its competitors to determine the firm's financial worth.
China Finance Online is currently regarded as number one stock in earnings per share category among related companies. It is currently regarded as number one stock in return on equity category among related companies . . The current year Average Equity is expected to grow to about 20.8 M

China Return On Equity vs. Earnings Per Share

Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
China Finance 
Earnings per Share 
 = 
Earnings 
Average Shares 
(3.62) X
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.
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.
China Finance 
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
(63.86) %
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.

China Return On Equity Comparison

China Finance Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in China Finance, profitability is also one of the essential criteria for including it into their portfolios because, without profit, China Finance will eventually generate negative long term returns. The profitability progress is the general direction of China Finance's change in net profit over the period of time. It can combine multiple indicators of China Finance, 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 2021
Accumulated Other Comprehensive Income6.3 M6.9 M
Consolidated Income-11.4 M-12.2 M
Net Income-10.6 M-11.4 M
Net Income Common Stock-10.6 M-11.4 M
Net Income to Non Controlling Interests-792 K-854.6 K
Operating Income-11.2 M-12 M
Income Tax Expense-182.6 K-187.4 K
Limited together with its subsidiaries, provides web-based financial services in the Peoples Republic of China and Hong Kong. The company was incorporated in 1998 and is based in Beijing, the Peoples Republic of China. China Finance operates under Capital Markets classification in the United States and is traded on NASDAQ Exchange. It employs 493 people.

China Profitability Driver Comparison

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

China Finance Profitability Trends

China Finance profitability trend refers to the progression of profit or loss within a business. An upward trend means that China Finance'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 China Finance'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.

China Finance 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 China Finance different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards China Finance 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 China Finance's future profitability.

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

China Finance Pair Trading

China Finance Online Pair Trading Analysis

Correlation analysis and pair trading evaluation for China Finance and Diginex. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
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Use Investing Themes to Complement your China Finance position

In addition to having China Finance 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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Insurance
Insurance Theme
Fama and French focuses on testing asset pricing under different economic assumptions. Insurance theme has 61 constituents.
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Please see Risk vs Return Analysis. Note that the China Finance Online information on this page should be used as a complementary analysis to other China Finance's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Valuation module to check real value of public entities based on technical and fundamental data.

Complementary Tools for China Stock analysis

When running China Finance Online price analysis, check to measure China Finance'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 China Finance is operating at the current time. Most of China Finance's value examination focuses on studying past and present price action to predict the probability of China Finance's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move China Finance's price. Additionally, you may evaluate how the addition of China Finance to your portfolios can decrease your overall portfolio volatility.
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To fully project China Finance's future profitability" href="/future-stock-price/JRJC">future profitability, investors should examine all historical financial statements" href="/financial-statements/JRJC">financial statements. These statements provide investors with a comprehensive snapshot of the financial position" href="/financial-statements/JRJC">financial position of China Finance Online at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements" href="/financial-statements/JRJC">financial statements. These documents include China Finance's income statement, its balance sheet, and the statement of cash flows.
Potential China Finance investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although China Finance investors may work on each financial statement separately, they are all related. The changes in China Finance's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on China Finance'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.