BEST Story

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BEST -- USA Stock  

USD 2.09  0.08  3.98%

BEST EBITDA Margin is comparatively stable at the moment as compared to the past year. BEST reported EBITDA Margin of 0.011 in 2019. Gross Margin is likely to gain to 0.06 in 2020, whereas Free Cash Flow is likely to drop (668.3 M) in 2020. Today's short post will review BEST as your potential position. We will break down the question of why private investors should continue to be confident in BEST outlook.
Published over a month ago
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What can we learn from BEST (NYSE:BEST) newest price fluctuation
This firm has a beta of 1.4426. Let's try to break down what BEST's beta means in this case. As returns on the market increase, BEST returns are expected to increase less than the market. However, during the bear market, the loss on holding BEST will be expected to be smaller as well. The beta indicator helps investors understand whether BEST moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if BEST deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as BEST Inc. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for BEST

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of BEST's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of BEST in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as BEST. Your research has to be compared to or analyzed against BEST's peers to derive any actionable benefits. When done correctly, BEST's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in BEST Inc.

How important is BEST's Liquidity

BEST financial leverage refers to using borrowed capital as a funding source to finance BEST Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. BEST 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. Please check the breakdown between BEST's total debt and its cash.

How BEST utilizes its cash?

To perform a cash flow analysis of BEST, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash BEST is receiving and how much cash it distributes out in a given period. The BEST cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. BEST Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. BEST reported Net Cash Flow from Operations of 980.76 Million in 2020

Breaking down BEST Indicators

The modest gains experienced by current holders of BEST could raise concerns from private investors as the firm it trading at a share price of 2.82 on 13,229,638 in volume. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in November. The stock standard deviation of daily returns for 30 days investing horizon is currently 6.88. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the BEST partners.

Returns Breakdown

Return on Assets(0.014)
Return on Equity(0.0513)
Return Capital(0.0133)
Return on Sales(0.003237)

Our perspective of the newest BEST gain

Newest kurtosis is at 1.55. BEST Inc exhibits very low volatility with skewness of 0.94 and kurtosis of 1.55. However, we advise investors to further study BEST Inc technical indicators to make sure all market info is available and is reliable.

Our Takeaway on BEST Investment

Whereas some other companies under the trucking industry are still a bit expensive, BEST may offer a potential longer-term growth to private investors. Taking everything into account, as of the 18th of December 2020, our research shows that BEST is a rather very risky investment opportunity with a close to average odds of financial distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our present 30 days recommendation on the firm is Cautious Hold.

About Contributor

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 Achuva Shats do not own shares of BEST Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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