China Z Score

CIHKY
 Stock
  

USD 23.14  0.03  0.13%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Continue to China Merchants Piotroski F Score and China Merchants Valuation analysis.
  

China Z Score Analysis

China Merchants' Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

In accordance with the company's disclosures, China Merchants Bank has a Z Score of 0.0. This is 100.0% lower than that of the Financial Services sector and about the same as Banks—Regional (which currently averages 0.0) industry. The z score for all United States stocks is 100.0% higher than that of the company.

China Merchants Institutional Holders

Institutional Holdings refers to the ownership stake in China Merchants that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of China Merchants' outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing China Merchants' value.
Security TypeSharesValue
Thomas White International LtdCommon Shares92.1 K3.1 M
Henry James International Management IncCommon Shares9.4 K318 K
Pnc Financial Services Group IncCommon Shares1.2 K39 K
Private Capital Group LlcCommon Shares31.01000
Thomas White International LtdCommon Shares112.6 K4.4 M
Ativo Capital Management LlcCommon Shares38.3 K1.5 M
Pnc Financial Services Group IncCommon Shares52521 K

China Fundamentals

About China Merchants Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze China Merchants Bank's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of China Merchants using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of China Merchants Bank based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards China Merchants in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, China Merchants' short interest history, or implied volatility extrapolated from China Merchants options trading.

Pair Trading with China Merchants

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

Moving together with China Merchants

+0.72IBMInternational Business TrendingPairCorr
The ability to find closely correlated positions to China Merchants could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace China Merchants 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 China Merchants - 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 China Merchants Bank to buy it.
The correlation of China Merchants is a statistical measure of how it moves in relation to other equities. 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 China Merchants moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if China Merchants Bank 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 China Merchants 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
Continue to China Merchants Piotroski F Score and China Merchants Valuation analysis. You can also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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Is China Merchants' 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 China Merchants. If investors know China 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 China Merchants listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of China Merchants Bank 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 Merchants' value that differs from its market value or its book value, called intrinsic value, which is China Merchants' 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 Merchants' market value can be influenced by many factors that don't directly affect China Merchants' 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 China Merchants' value and its price as these two are different measures arrived at by different means. Investors typically determine China Merchants value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Merchants' 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.