Home / Street Sector / Analysts Opinion Over Profitability Valuation: Vipshop Holdings (NYSE:VIPS), The Michaels Companies (NASDAQ:MIK)

Analysts Opinion Over Profitability Valuation: Vipshop Holdings (NYSE:VIPS), The Michaels Companies (NASDAQ:MIK)

Moving on tracing line, Vipshop Holdings Limited (NYSE:VIPS) need to consider for profitability analysis, in latest session share price swings at $12.07 with percentage change of -14.82%.

Vipshop Holdings Limited (VIPS) announced its unaudited financial results for the third quarter ended September 30, 2016. “We are happy to have delivered solid financial results and healthy consumer growth despite a seasonally soft quarter for retail,” stated Mr. Eric Shen, chairman and chief executive officer of Vipshop, “As a leading online discount retailer for brands in China, we are committed to advancing the end-to-end shopping experience on our platform by providing our consumers with diverse products and more personalized merchandising.”

The Co has positive 3.60% profit margin to find consistent trends in a firm’s earnings. Gross profit margin and operating profit margin are its sub parts that firm have 24.30% and 4.20% respectively. VIPS has returns on investment of 15.70%. The returns on assets was 9.30% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 43.60%, which is measuring profitability by disclosing how much profit generates by VIPS with the shareholders’ money.

The firm attains analyst recommendation of 1.80 on scale of 1-5 with week’s performance of -9.86%. The firm current ratio calculated as 1.00, this value is acceptable if it lies in 1.3% to 3%. But its varies industry to industry. To strengthen these views, active industry firm has Quick Ratio of 0.70, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.90, sometimes its remain same with long term debt to equity ratio.

Waking on tracing line of previous stocks, The Michaels Companies, Inc. (NASDAQ:MIK) also making a luring appeal, share price swings at $24.86 with percentage change of 3.50% in most recent trading session.

Profitability Valuation

The profit margin can answer significantly to find consistent trends in a firm’s earnings, the Co has positive 7.20% profit margin that indicates every dollar of sales a firm actually keeps in earnings, and the larger number indicates improving and vise worse. Gross profit margin, operating profit margin are its sub parts that firm has 39.60% and 14.00% respectively. Moving toward returns ratio, MIK has returns on investment of 48.10% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as 18.20% hat gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of -20.90%, which is measuring a corporation’s profitability by revealing how much profit generates by MIK with the shareholders’ money. The firm attains analyst recommendation of 2.30 on scale of 1-5 with week’s performance of 3.28%. Moving toward ratio analysis, it has current ratio of 1.60 and quick ratio was calculated as 0.30. The firm attains analyst recommendation of 2.30 out of 1-5 scale with week’s performance of 3.28%.

 

About Devon Leftovich

Devon Leftovich is an entrepreneur. He has been writing and editing professionally for over six years. He is admin editor and senior content writer of SWR. However, he has determined to give investors something rare, a dignified partner who can manage money with integrity and a clear conscience about the degree of due diligence behind investment decisions. He said, "I love the financial world because it is like one big puzzle and I hope we the SWR help each other out to solve the puzzle to help us realize our dreams." Interests: Analysis of different Companies; including news and analyst rating updates. He performs analysis of Companies and publicizes important information for investor/traders community. Stocks long-term and short-term holding views, Tech Stocks

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