Xinyuan Real Operating Margin vs. Return On Equity

XIN Stock  USD 3.85  0.02  0.52%   
Taking into consideration Xinyuan Real's profitability measurements, Xinyuan Real Estate may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in November. Profitability indicators assess Xinyuan Real's ability to earn profits and add value for shareholders.

Xinyuan Real Operating Profit Margin

0.057

At this time, Xinyuan Real's Days Sales Outstanding is very stable compared to the past year. As of the 29th of October 2024, Days Of Sales Outstanding is likely to grow to 300.60, while Price To Sales Ratio is likely to drop 0.02. At this time, Xinyuan Real's Net Income Per E B T is very stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.240.1646
Way Up
Slightly volatile
For Xinyuan Real profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Xinyuan Real to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Xinyuan Real Estate utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Xinyuan Real's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Xinyuan Real Estate over time as well as its relative position and ranking within its peers.
  
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Is Real Estate Management & Development space 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 Xinyuan Real. If investors know Xinyuan 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 Xinyuan Real 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
4.927
Earnings Share
7.6
Revenue Per Share
150.905
Quarterly Revenue Growth
(0.27)
Return On Assets
0.0052
The market value of Xinyuan Real Estate is measured differently than its book value, which is the value of Xinyuan that is recorded on the company's balance sheet. Investors also form their own opinion of Xinyuan Real's value that differs from its market value or its book value, called intrinsic value, which is Xinyuan Real'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 Xinyuan Real's market value can be influenced by many factors that don't directly affect Xinyuan Real'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 Xinyuan Real's value and its price as these two are different measures arrived at by different means. Investors typically determine if Xinyuan Real is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Xinyuan Real'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.

Xinyuan Real Estate Return On Equity vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Xinyuan Real's current stock value. Our valuation model uses many indicators to compare Xinyuan Real value to that of its competitors to determine the firm's financial worth.
Xinyuan Real Estate is rated first in operating margin category among its peers. It is rated first in return on equity category among its peers reporting about  0.43  of Return On Equity per Operating Margin. The ratio of Operating Margin to Return On Equity for Xinyuan Real Estate is roughly  2.33 . At this time, Xinyuan Real's Operating Profit Margin is very stable compared to the past year. 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 Xinyuan Real's earnings, one of the primary drivers of an investment's value.

Xinyuan Real's Earnings Breakdown by Geography

Xinyuan Return On Equity vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Xinyuan Real

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.13 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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.

Xinyuan Real

Return On Equity

 = 

Net Income

Total Equity

 = 
0.055
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.

Xinyuan Return On Equity Comparison

Xinyuan Real is currently under evaluation in return on equity category among its peers.

Xinyuan Real Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Xinyuan Real, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Xinyuan Real will eventually generate negative long term returns. The profitability progress is the general direction of Xinyuan Real's change in net profit over the period of time. It can combine multiple indicators of Xinyuan Real, 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 Next Year
Accumulated Other Comprehensive Income153.2 M104.2 M
Operating Income48.3 M45.9 M
Income Before Tax85.8 M92.7 M
Total Other Income Expense Net37.5 M39.4 M
Net Income40.3 M20.4 M
Income Tax Expense55.3 M61 M
Net Loss-237 M-225.2 M
Net Income From Continuing Ops30.5 M32.1 M
Interest Income4.8 M4.5 M
Net Interest Income-172.2 M-163.6 M
Change To Netincome173.2 M181.9 M
Net Income Per Share 7.55  7.93 
Income Quality(6.72)(6.39)
Net Income Per E B T 0.47  0.63 

Xinyuan Profitability Driver Comparison

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

Use Xinyuan Real 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 Xinyuan Real 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 Xinyuan Real will appreciate offsetting losses from the drop in the long position's value.

Xinyuan Real Pair Trading

Xinyuan Real Estate Pair Trading Analysis

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

In addition to having Xinyuan Real 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?

Run Banks - Regional Thematic Idea Now

Banks - Regional
Banks - Regional Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Banks - Regional theme has 19 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Banks - Regional Theme or any other thematic opportunities.
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When determining whether Xinyuan Real Estate offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Xinyuan Real's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Xinyuan Real Estate Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Xinyuan Real Estate Stock:
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You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
To fully project Xinyuan Real's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Xinyuan Real Estate 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 Xinyuan Real's income statement, its balance sheet, and the statement of cash flows.
Potential Xinyuan Real investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Xinyuan Real investors may work on each financial statement separately, they are all related. The changes in Xinyuan Real's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Xinyuan Real'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.