Championx Corp Profitability Analysis

CHX
 Stock
  

USD 21.68  0.22  1.03%   

For Championx Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Championx Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Championx Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Championx Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Championx Corp over time as well as its relative position and ranking within its peers. Continue to Trending Equities.
  
Price to Sales Ratio is likely to rise to 1.39 in 2022. Return on Sales is likely to rise to 0.07 in 2022. Championx Corp Consolidated Income is fairly stable at the moment as compared to the past year. Championx Corp reported Consolidated Income of 114.24 Million in 2021. Net Income is likely to rise to about 122.2 M in 2022, whereas Accumulated Other Comprehensive Income is likely to drop (23.3 M) in 2022.

Championx Corp Revenues

2.46 Billion

Is Championx Corp'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 Championx Corp. If investors know Championx 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 Championx Corp 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
3.33
Market Capitalization
4.4 B
Quarterly Revenue Growth YOY
0.25
Return On Assets
0.0502
Return On Equity
0.0982
The market value of Championx Corp is measured differently than its book value, which is the value of Championx that is recorded on the company's balance sheet. Investors also form their own opinion of Championx Corp's value that differs from its market value or its book value, called intrinsic value, which is Championx Corp'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 Championx Corp's market value can be influenced by many factors that don't directly affect Championx Corp'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 Championx Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Championx Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Championx Corp'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.

Championx Corp Profit Margin vs. Shares Owned by Institutions Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Championx Corp's current stock value. Our valuation model uses many indicators to compare Championx Corp value to that of its competitors to determine the firm's financial worth.
Championx Corp is number one stock in shares owned by institutions category among related companies. It is rated fifth in profit margin category among related companies fabricating about  0.05  of Profit Margin per Shares Owned by Institutions. The ratio of Shares Owned by Institutions to Profit Margin for Championx Corp is roughly  21.99 . Championx Corp Profit Margin is fairly stable at the moment as compared to the past year. Championx Corp reported Profit Margin of 0.037 in 2021. Comparative valuation analysis is a catch-all model that can be used if you cannot value Championx Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Championx Corp'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 Championx Corp's earnings, one of the primary drivers of an investment's value.

Championx Profit Margin vs. Shares Owned by Institutions

Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
Championx Corp 
Shares Held by Institutions 
 = 
Funds and Banks 
Firms 
105.11 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
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.
Championx Corp 
Profit Margin 
 = 
Net Income 
Revenue 
X
100 
4.78 %
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.

Championx Profit Margin Comparison

Championx Corp is currently under evaluation in profit margin category among related companies.

Championx Corp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Championx Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Championx Corp will eventually generate negative long term returns. The profitability progress is the general direction of Championx Corp's change in net profit over the period of time. It can combine multiple indicators of Championx Corp, 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 2022
Accumulated Other Comprehensive Income-21.6 M-23.3 M
Consolidated Income114.2 M123.3 M
Net Income113.3 M122.2 M
Net Income Common Stock113.3 M122.2 M
Net Income to Non Controlling Interests941 K975.6 K
Operating Income204.6 M220.8 M
Income Tax Expense38.4 M41.5 M
Net Income Per Employee16.2 K17.5 K
ChampionX Corporation provides chemistry solutions, and engineered equipment and technologies to oil and gas companies worldwide. ChampionX Corporation is headquartered in The Woodlands, Texas. Championx Corp operates under Oil Gas Equipment Services classification in the United States and is traded on NASDAQ Exchange. It employs 7000 people.

Championx Profitability Driver Comparison

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

Championx Corp Profitability Trends

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

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

Use Championx Corp 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 Championx Corp 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 Championx Corp will appreciate offsetting losses from the drop in the long position's value.

Championx Corp Pair Trading

Championx Corp Pair Trading Analysis

The ability to find closely correlated positions to Championx Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Championx Corp 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 Championx Corp - 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 Championx Corp to buy it.
The correlation of Championx Corp 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 Championx Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Championx Corp 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 Championx Corp 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

Use Investing Themes to Complement your Championx Corp position

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Continue to Trending Equities. Note that the Championx Corp information on this page should be used as a complementary analysis to other Championx Corp'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 Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

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When running Championx Corp price analysis, check to measure Championx Corp'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 Championx Corp is operating at the current time. Most of Championx Corp's value examination focuses on studying past and present price action to predict the probability of Championx Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Championx Corp's price. Additionally, you may evaluate how the addition of Championx Corp to your portfolios can decrease your overall portfolio volatility.
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To fully project Championx Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Championx Corp 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 Championx Corp's income statement, its balance sheet, and the statement of cash flows.
Potential Championx Corp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Championx Corp investors may work on each financial statement separately, they are all related. The changes in Championx Corp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Championx Corp'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.