First Tractor Price To Book vs. Return On Equity
| FIRRFDelisted Stock | USD 0.74 0.00 0.00% |
For First Tractor profitability analysis, we use financial ratios and fundamental drivers that measure the ability of First Tractor to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well First Tractor utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between First Tractor's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of First Tractor over time as well as its relative position and ranking within its peers.
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First Tractor Return On Equity vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining First Tractor's current stock value. Our valuation model uses many indicators to compare First Tractor value to that of its competitors to determine the firm's financial worth. First Tractor is rated # 3 in price to book category among its peers. It also is rated # 3 in return on equity category among its peers reporting about 0.19 of Return On Equity per Price To Book. The ratio of Price To Book to Return On Equity for First Tractor is roughly 5.28 . 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 First Tractor's earnings, one of the primary drivers of an investment's value.First Return On Equity vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
First Tractor |
| = | 0.56 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.
First Tractor |
| = | 0.11 |
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.
First Return On Equity Comparison
First Tractor is currently under evaluation in return on equity category among its peers.
First Tractor Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in First Tractor, profitability is also one of the essential criteria for including it into their portfolios because, without profit, First Tractor will eventually generate negative long term returns. The profitability progress is the general direction of First Tractor's change in net profit over the period of time. It can combine multiple indicators of First Tractor, 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.
First Tractor Company Limited engages in the research and development, manufacture, and sale of agricultural and power machinery, and related spare parts worldwide. First Tractor Company Limited was founded in 1955 and is based in Luoyang, China. First Tractor operates under Farm Heavy Construction Machinery classification in the United States and is traded on OTC Exchange. It employs 7435 people.
First Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on First Tractor. 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 First Tractor 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 First Tractor's important profitability drivers and their relationship over time.
Use First Tractor 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 First Tractor 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 First Tractor will appreciate offsetting losses from the drop in the long position's value.First Tractor Pair Trading
First Tractor Pair Trading Analysis
The ability to find closely correlated positions to First Tractor could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First Tractor 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 First Tractor - 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 First Tractor to buy it.
The correlation of First Tractor is a statistical measure of how it moves in relation to other instruments. 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 First Tractor moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Tractor 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 First Tractor 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.Use Investing Themes to Complement your First Tractor position
In addition to having First Tractor 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.Did You Try This Idea?
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Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as various price indices. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Consideration for investing in First Pink Sheet
If you are still planning to invest in First Tractor check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the First Tractor's history and understand the potential risks before investing.
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