Canoo Stock Buy Hold or Sell Recommendation

GOEV
 Stock
  

USD 1.40  0.04  2.78%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Canoo Inc is 'Strong Sell'. Macroaxis provides Canoo buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Canoo positions. The advice algorithm takes into account all of Canoo's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Canoo's buy-and-hold perspective. Please check Canoo Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Canoo and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Canoo Inc.

Execute Canoo Buy or Sell Advice

The Canoo recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Canoo Inc. Macroaxis does not own or have any residual interests in Canoo Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Canoo's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell CanooBuy Canoo
Strong Sell

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Reporting Quality (M-Score)

Details
For the selected time horizon Canoo Inc has a Mean Deviation of 4.06, Standard Deviation of 6.09 and Variance of 37.03
We provide trade advice to complement the prevailing expert consensus on Canoo Inc. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Canoo is not overpriced, please confirm all Canoo Inc fundamentals, including its debt to equity, and the relationship between the ebitda and earnings per share . Please also double-check Canoo Inc price to book to validate your buy or sell decision is consistent with all fundamental data available and that the company can sustain itself in the current economic cycle.

Canoo Trading Alerts and Improvement Suggestions

Canoo Inc generated a negative expected return over the last 90 days
Canoo Inc has high historical volatility and very poor performance
Canoo Inc may become a speculative penny stock
The company currently holds 26.98 M in liabilities with Debt to Equity (D/E) ratio of 0.14, which may suggest the company is not taking enough advantage from borrowing. Canoo Inc has a current ratio of 0.38, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Canoo until it has trouble settling it off, either with new capital or with free cash flow. So, Canoo's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Canoo Inc sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Canoo to invest in growth at high rates of return. When we think about Canoo's use of debt, we should always consider it together with cash and equity.
Net Loss for the year was (346.77 M) with profit before overhead, payroll, taxes, and interest of 1.88 M.
Canoo Inc currently holds about 36.48 M in cash with (300.82 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.13.
Roughly 19.0% of Canoo shares are held by company insiders
Latest headline from news.google.com: CEO Tony Aquila Just Bought More Canoo Stock - InvestorPlace

Canoo Returns Distribution Density

The distribution of Canoo's historical returns is an attempt to chart the uncertainty of Canoo's future price movements. The chart of the probability distribution of Canoo stock daily returns describes the distribution of returns around its average expected value. We use Canoo Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Canoo returns is essential to provide solid investment advice for Canoo.
Mean Return-0.98Value At Risk-8.67
Potential Upside7.69Standard Deviation6.09
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Canoo historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Canoo Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Canoo or Automobiles sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Canoo's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Canoo stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-1.11
β
Beta against NYSE Composite1.68
σ
Overall volatility
6.20
Ir
Information ratio -0.17

Canoo Volatility Alert

Canoo Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize Canoo Inc independently to ensure intended market timing strategies are aligned with expectations about Canoo volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Canoo's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Canoo's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Canoo Implied Volatility

Canoo's implied volatility exposes the market's sentiment of Canoo Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Canoo's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Canoo stock will not fluctuate a lot when Canoo's options are near their expiration.

Canoo Fundamentals Vs Peers

Comparing Canoo's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Canoo's direct or indirect competition across all of the common fundamentals between Canoo and the related equities. This way, we can detect undervalued stocks with similar characteristics as Canoo or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Canoo's fundamental indicators could also be used in its relative valuation, which is a method of valuing Canoo by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Canoo to competition
FundamentalsCanooPeer Average
Return On Equity(1.58) %(0.31) %
Return On Asset(0.67) %(0.14) %
Current Valuation522.38 M16.62 B
Shares Outstanding341.77 M571.82 M
Shares Owned by Insiders18.75 %10.09 %
Shares Owned by Institutions31.63 %39.21 %
Number of Shares Shorted40.57 M4.71 M
Price to Book2.16 X9.51 X
Price to Sales937.68 X11.42 X
Gross Profit1.88 M27.38 B
EBITDA(543.79 M)3.9 B
Net Income(346.77 M)570.98 M
Cash and Equivalents36.48 M2.7 B
Cash per Share0.13 X5.01 X
Total Debt26.98 M5.32 B
Debt to Equity0.14 %48.70 %
Current Ratio0.39 X2.16 X
Book Value Per Share0.76 X1.93 K
Cash Flow from Operations(300.82 M)971.22 M
Short Ratio3.54 X4.00 X
Earnings Per Share(1.99) X3.12 X
Target Price5.25
Number of Employees80518.84 K
Beta1.19-0.15
Market Capitalization478.47 M19.03 B
Total Asset523.07 M29.47 B
Z Score6.08.72
Net Asset523.07 M
   Acquisition by Ramesh Murthy of 43838 shares of Canoo subject to Rule 16b-3 [view details]

About Canoo Buy or Sell Advice

When is the right time to buy or sell Canoo Inc? Buying financial instruments such as Canoo Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Canoo 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.

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Health Management
Health Management Theme
Major hospitals and healthcare providers. The Health Management theme has 40 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 Health Management Theme or any other thematic opportunities.
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Please check Canoo Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Canoo Inc information on this page should be used as a complementary analysis to other Canoo'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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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Is Canoo'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 Canoo. If investors know Canoo 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 Canoo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
478.5 M
Return On Assets
(0.67) 
Return On Equity
(1.58) 
The market value of Canoo Inc is measured differently than its book value, which is the value of Canoo that is recorded on the company's balance sheet. Investors also form their own opinion of Canoo's value that differs from its market value or its book value, called intrinsic value, which is Canoo'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 Canoo's market value can be influenced by many factors that don't directly affect Canoo'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 Canoo's value and its price as these two are different measures arrived at by different means. Investors typically determine Canoo value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Canoo'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.