Azure Power Global secures Sharpe Ratio (or Efficiency) of -0.0713, which signifies that the company had -0.0713% of return per unit of risk over the last 3 months. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. Azure Power Global exposes twenty-eight different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to confirm Azure Power Global
mean deviation of 3.71, and Risk Adjusted Performance of
(0.13) to double-check the risk estimate we provide.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Azure Power income statement, its balance sheet, and the statement of cash flows. Potential Azure Power investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Azure Power investors may use each financial statement separately, they are all related. The changes in Azure Power's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Azure Power'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.
The goal of Azure Power
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Azure Power performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Azure Power shares is the value that is considered the true value of the share. If
the intrinsic value of Azure is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Azure Power. Please read more on our
fundamental analysis page.
Watch out for price decline
Please consider monitoring Azure Power on a daily basis if you are holding a position in it. Azure Power is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Azure Power stock to be traded above the $1 level to remain listed. If Azure Power stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Azure Power's Liquidity
Azure Power
financial leverage refers to using borrowed capital as a funding source to finance Azure Power Global ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Azure Power financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Azure Power's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Azure Power's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Azure Power's total debt and its cash.
A Deeper Perspective
Institutional investor usually refers to an organization that invests money in Azure Power on behalf of clients or other money managers. Buying and selling of large positions of Azure Power stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Azure Power stock. Let's take a look at how the ownership of Azure is distributed among investors.
Ownership Allocation
Azure Power holds a total of fourty-eight million three hundred thirty thousand
outstanding shares. The majority of Azure Power Global
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Azure Power Global to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Azure Power. Please pay attention to any change in the institutional holdings of Azure Power Global as this could imply that something significant has changed or about to change at the company. Also note that nearly two million four hundred sixteen thousand five hundred invesors are currently shorting Azure Power expressing very little confidence in its
future performance.
| Retail Investors | -5.33 |
| Insiders | 0.06 |
| Institutions | 105.27 |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Azure Power has an asset utilization ratio of 38.41 percent. This indicates that the company is making $0.38 for each dollar of assets. An increasing asset utilization means that Azure Power Global is more efficient with each dollar of assets it utilizes for everyday operations.
| Assets Non Current112.8 B | | |
| Current Assets | 24.42 Billion | 17.58 |
| Assets Non Current | 112.75 Billion | 81.17 |
| Goodwill | 36.86 Million | 0.0265 |
| Tax Assets | 1.69 Billion | 1.22 |
Breaking up Azure Power latest price dip
Latest coefficient of variation is at -996.95. Azure Power Global exhibits very low volatility with skewness of -0.27 and kurtosis of 0.04. However, we advise investors to further study Azure Power Global technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Azure Power's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Azure Power'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.
Azure Power Implied Volatility
Azure Power's implied volatility exposes the market's sentiment of Azure Power Global stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Azure Power'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 Azure Power stock will not fluctuate a lot when Azure Power's options are near their expiration.
Our Final Takeaway
Although some firms in the utilities—renewable industry are either recovering or due for a correction, Azure Power may not be performing as strong as the other in terms of long-term growth potentials. While some shareholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Azure Power.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Azure Power Global. Please refer to our
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