By analyzing existing basic indicators between Couchbase and Absolute, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Absolute with a short position in Couchbase. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of Couchbase indicates not a very effective usage of assets in December.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Couchbase or Evertec is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Couchbase's Liquidity
Couchbase
financial leverage refers to using borrowed capital as a funding source to finance Couchbase ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Couchbase 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 Couchbase'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 Couchbase'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 Couchbase's total debt and its cash.
Correlation Between Couchbase and Evertec
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Couchbase together with similar or unrelated positions with a negative correlation. For example, you can also add Evertec to your portfolio. If Evertec is not perfectly correlated to Couchbase it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Couchbase, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Couchbase and Evertec in your portfolio? Please note if you are using this as a pair-trade strategy between Couchbase and Evertec, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between BASE and EVTC for more information.
Another Deeper Perspective
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Couchbase revenue. Based on the latest financial disclosure, Couchbase reported 108.19
M of revenue. This is 97.35% lower than that of the Technology sector and significantly higher than that of the
Software—Infrastructure industry. The revenue for all United States stocks is 98.85% higher than that of Couchbase. As for Absolute Software we see revenue of 120.78
M, which is much higher than that of the Software—Infrastructure
| Couchbase | 108.19 Million |
| Sector | 0.0 |
| Absolute | 120.78 Million |
Another 3 percent surge for Couchbase
Market Risk Adjusted Performance just dropped to -0.44, may indicate upcoming price decrease.
As of the 7th of December, Couchbase shows the
risk adjusted performance of
(0.12), and Mean Deviation of 3.98. Couchbase
technical analysis gives you the methodology to make use of
historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We are able to interpolate and collect nineteen
technical drivers for Couchbase, which can be compared to its rivals. Please confirm
Couchbase treynor ratio, as well as the
relationship between the potential upside and
expected short fall to decide if Couchbase is priced correctly, providing market reflects its regular price of 29.56 per share. Given that Couchbase has
jensen alpha of
(0.76), we suggest you to validate Couchbase's prevailing market performance to make sure the company can sustain itself at a future point.
The Current Takeaway on Couchbase Investment
Although some other entities in the software—infrastructure industry are either recovering or due for a correction, Couchbase may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Couchbase valuation and our trade advice on Couchbase is due to the recent market swings and your selection of investing horizon. 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 Couchbase.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of Couchbase. Please refer to our
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