China Return On Equity

CIHKY
 Stock
  

USD 25.54  0.22  0.85%   

China Merchants Bank fundamentals help investors to digest information that contributes to China Merchants' financial success or failures. It also enables traders to predict the movement of China OTC Stock. The fundamental analysis module provides a way to measure China Merchants' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to China Merchants otc stock.
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  

China Return On Equity Analysis

China Merchants' 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.
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
More About Return On Equity | All Equity Analysis

Current China Merchants Return On Equity

    
  15.02 %  
Most of China Merchants' fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, China Merchants Bank is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
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.
Compare to competition

Based on the latest financial disclosure, China Merchants Bank has a Return On Equity of 15.02%. This is much higher than that of the Financial Services sector and significantly higher than that of the Banks—Regional industry. The return on equity for all United States stocks is notably lower than that of the firm.

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Fundamental Analysis

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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.

China Merchants Investors Sentiment

The influence of China Merchants' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in China. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
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 against China Merchants

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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 Altman Z Score analysis. Note that the China Merchants Bank information on this page should be used as a complementary analysis to other China Merchants' 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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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.
Quarterly Earnings Growth YOY
0.13
Market Capitalization
130.4 B
Quarterly Revenue Growth YOY
0.098
Return On Assets
0.0138
Return On Equity
0.15
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.