Profitability Analysis To Overcome Risk: Vipshop Holdings Limited (NYSE:VIPS)

Vipshop Holdings Limited (NYSE:VIPS) kept active in technical ratio analysis, on current situation shares price build up 2.61% to $13.36. The total volume of 4.88 Million shares held in the session, while on average its shares change hands 5298.21 shares.

Efficiency Evaluation in Focus

Entering into profitability analysis, the co has noticeable returns on equity ratio of 41.80%, which discloses how corporation’s management efficiently generates profit from shareholders invested money. The returns on investment very popular metric among passive investors, it stands at 16.10%, when it lies in positive figure than security is feasible for investment or goes for higher ROI stocks. To see the other side of picture, profit margin of Vipshop Holdings Limited (NYSE:VIPS) stands at positive 3.60%; that indicates a firm actually every dollar of sales keeps in earnings. The 9.50% returns on assets present notable condition of firm. Mostly ROA known as a comparative measure, it is best to compare it against a firm’s previous ROA numbers or the ROA of a same firm.

Analysts Recommendation

Finally to see some strong financial remarks by WSJ over VIPS performance. Out of the pool of analysts 15 gave their BUY ratings on the stock in previous month as 16 analysts having BUY in current month. The stock was ranked as Underweight by 1 analyst while 1 analyst gave SELL rank. Majority ranked Overweight from the pool of analysts.

The next year first quarter EPS estimates trend for current period shows $0.13 while one month ago this estimate trend was for $0.12. EPS indicator shows the robustness of the stock and its analysis opens up the clear picture of company’s profitability. On annual basis of EPS, FY 2017 Estimate Trends at current were for $0.79 and for the one month was for $0.49 as compared to three months ago was for $0.49. Whereas, VIPS received highest price target of 20 and low target of 11. The stock price target chart showed average price target of 16.11 as compared to current price of 13.36.

Following previous ticker characteristics, Vipshop Holdings Limited (NYSE:VIPS) also run on active notice, stock price build up 2.61% after traded at $13.36 in most recent trading session.

VIPS has price to earnings ratio of 28.07 and the price to current year EPS stands at 22.40%. Whereas the traders who further want to see about this, may be interested to see Price to next year’s EPS that would be 21.36%. Moving toward ratio analysis, it has current ratio of 1.00 and quick ratio was calculated as 0.70. The debt to equity ratio appeared as 0.76 for seeing its liquidity position.

To find out the technical position of VIPS, Vipshop Holdings Limited (NYSE:VIPS) holds price to book ratio of 9.41 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 13.36. The price to earnings growth ration calculated as 9.60. VIPS is presenting price to cash flow of 11.13.

Taking notice on volatility measures, price volatility of stock was 2.85% for a week and 3.09% for a month. The price volatility’s Average True Range for 14 days was 0.39. On these bases, analysts would recommend this stock as an “Active Revolving Stocks.” The firm attains analyst recommendation of 2.00 out of 1-5 scale with week’s performance of 2.77%. Vipshop Holdings Limited (NYSE:VIPS) ‘s institutional ownership was registered as 82.60%, while insider ownership was 0.78%.

 

About Aaron Smithies

Aaron Smithies has a wide look on current monetary and financial events. He is an editor and a writer. His views; At Streetwise Report, we think the best opportunities arise from a complete understanding of all investing disciplines in order to identify the most attractive stocks at any given time. Interests: Biotech, Finical markets, Dividend stock ideas & income, Energy stocks, Consumer goods stocks

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