The company's average rating is Buy from 4 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Boralex market sentiment investors' perception of the future value of Boralex. Let us look at a few aspects of Boralex technical analysis.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Boralex. In general, sophisticated investors focus on analyzing Boralex stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Boralex's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Boralex's intrinsic value. In addition to deriving basic predictive indicators for Boralex, many experienced traders also check how macroeconomic factors affect Boralex price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Boralex's 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 note, it is not enough to conduct a financial or market analysis of a single entity such as Boralex. Your research has to be compared to or analyzed against Boralex's peers to derive any actionable benefits. When done correctly, Boralex's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Boralex.
How important is Boralex's Liquidity
Boralex
financial leverage refers to using borrowed capital as a funding source to finance Boralex ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Boralex 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 Boralex'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 Boralex'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 Boralex's total debt and its cash.
Boralex Gross Profit
Boralex Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Boralex previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Boralex Gross Profit growth over the last 10 years. Please check Boralex's
gross profit and other
fundamental indicators for more details.
Closer look at Boralex Standard Deviation
Boralex has current Standard Deviation of 1.6. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.
Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility. A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.
Standard Deviation | = | SQRT(V) |
| = | 1.6 |
Let's now compare Boralex Standard Deviation to its closest peers:
| BLX.TO | 1.6035833989441328 |
| BEP-PO.TO | 0.66 |
| NPI.TO | 1.31 |
| BEPC.TO | 1.78 |
| IAG.TO | 1.14 |
Our Boralex analysis suggests possible reversion in March
Boralex recent maximum drawdown upswings over 6.76. Boralex has relatively low volatility with skewness of -0.26 and kurtosis of -0.03. However, we advise all investors to independently investigate Boralex to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Boralex'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 Boralex'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.
Our Conclusion on Boralex
Although other entities in the utilities—renewable industry are either recovering or due for a correction, Boralex may not be performing as strong as the other in terms of long-term growth potentials. To summarize, as of the 23rd of February 2023, our analysis shows that Boralex slowly supersedes the market. The firm is
overvalued and projects
close to average probability of distress for the next 2 years. Our primary 90 days buy-hold-sell recommendation on the firm is
Cautious Hold.
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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