China Stock Story

Lets try to digest the odds of China Yuchai to fully recover from the latest dip as its shares went up 4.21%. This firm current daily volatility is 2.85 percent, with a beta of 1.09 and an alpha of -0.31 over DOW. As many investors are getting excited about machinery, it is fair to digest China Yuchai International. We will look into some reasons why it is still possible for China Yuchai to maintain above-average margins while minimizing volatility.
Published over three months ago
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Will China Yuchai (NYSE:CYD) volatility surge before June

China Yuchai International has roughly 6.14 B in cash with 1.42 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 150.34, which can makes it an attractive takeover target, given it will continue generating positive cash flow.

How important is China Yuchai's Liquidity

China Yuchai financial leverage refers to using borrowed capital as a funding source to finance China Yuchai International ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. China Yuchai 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 China Yuchai's total debt and its cash.

How does China utilize its cash?

To perform a cash flow analysis of China Yuchai, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash China Yuchai is receiving and how much cash it distributes out in a given period. The China Yuchai cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
China Yuchai Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 675.28 Million

Details

China Yuchai Interna secures Sharpe Ratio (or Efficiency) of -0.16, which signifies that the company had -0.16% 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. China Yuchai International exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm China Yuchai Interna mean deviation of 2.12, and Risk Adjusted Performance of (0.21) to double-check the risk estimate we provide.
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Our perspective of the latest China Yuchai surge

The mean deviation is down to 2.12 as of today.
As of the 16th of May 2022, China Yuchai shows the mean deviation of 2.12, and Risk Adjusted Performance of (0.21). China Yuchai Interna 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 have analyzed and interpolated nineteen technical drivers for China Yuchai International, which can be compared to its rivals. Please confirm China Yuchai Interna variance, as well as the relationship between the maximum drawdown and semi variance to decide if China Yuchai Interna is priced correctly, providing market reflects its regular price of 10.15 per share. Given that China Yuchai has jensen alpha of (0.31), we suggest you to validate China Yuchai International's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on China Yuchai

Although some firms in the specialty industrial machinery industry are either recovering or due for a correction, China may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither acquire new shares of China nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 China Yuchai.

Editorial Staff

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 Raphi Shpitalnik do not own shares of China Yuchai International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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