Desktop Stock Story

DM
 Stock
  

USD 3.31  0.15  4.75%   

85% of stocks are less risky than Desktop on the basis of their historical return distribution, and some 99% of all equities are expected to be superior in generating returns on investments over the next 60 days. While some of us are excited about machinery space, it makes sense to summarize Desktop Metal in greater detail to make a better estimate of its risk and reward. We will go over a few points Desktop Metal stakeholders should remember regarding its volatility.
Published over two months ago
View all stories for Desktop Metal | View All Stories

What is June outlook for Desktop Metal (NYSE:DM) given current volatility levels?

The company reports 12.19 M of total liabilities with total debt to equity ratio (D/E) of 0.01, which may suggest Desktop Metal is not taking enough advantage from financial leverage. Desktop Metal has a current ratio of 9.58, indicating that it is in good position to pay out its debt commitments in time. Debt can assist Desktop Metal until it has trouble settling it off, either with new capital or with free cash flow. So, Desktop Metal's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Desktop Metal sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Desktop to invest in growth at high rates of return. When we think about Desktop Metal's use of debt, we should always consider it together with cash and equity.
The firm shows a Beta (market volatility) of 2.4186, which means a somewhat significant risk relative to the market. Let's try to break down what Desktop's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Desktop Metal will likely underperform. Even though it is essential to pay attention to Desktop Metal historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards predicting any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Desktop Metal exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Desktop Metal has an expected return of -0.45%. Please be advised to confirm Desktop Metal semi variance, and the relationship between the maximum drawdown and accumulation distribution to decide if Desktop Metal performance from the past will be repeated at some point in the near future.
Volatility is a rate at which the price of Desktop Metal or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Desktop Metal may increase or decrease. In other words, similar to Desktop's beta indicator, it measures the risk of Desktop Metal and helps estimate the fluctuations that may happen in a short period of time. So if prices of Desktop Metal fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

How important is Desktop Metal's Liquidity

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

How does Desktop utilize its cash?

To perform a cash flow analysis of Desktop Metal, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Desktop Metal is receiving and how much cash it distributes out in a given period. The Desktop Metal cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Desktop Metal Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (167.29 Million)

Desktop Metal Volatility Drivers

Desktop Metal unsystematic risk is unique to Desktop Metal and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Desktop Metal you can also buy Rivian Automotive. You can also mitigate this risk by investing in the its industry or sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Desktop Metal important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Desktop Metal income statement and balance sheet. Here are more details about Desktop volatility.
0.760.270.90.740.950.950.990.980.930.97-0.740.910.750.94-0.74-0.740.78-0.850.99-0.960.630.990.010.650.080.660.840.760.910.870.9-0.110.020.230.730.960.780.060.96-0.790.960.6-0.630.970.680.620.820.67
0.760.820.421.00.520.510.80.750.930.6-0.130.690.250.5-0.13-0.130.24-0.320.84-0.550.920.7-0.630.70.70.840.980.850.950.830.960.56-0.630.80.990.90.840.040.6-0.210.550.960.00.650.050.970.990.99
0.270.82-0.160.84-0.05-0.060.320.260.580.050.450.21-0.26-0.080.450.45-0.320.260.380.020.810.17-0.960.450.970.650.730.590.620.460.650.93-0.961.00.840.50.55-0.030.050.38-0.020.930.540.11-0.520.910.760.89
0.90.42-0.160.40.990.990.860.90.710.97-0.950.840.890.99-0.95-0.950.96-0.980.84-0.990.280.930.420.44-0.350.370.550.490.660.670.65-0.510.43-0.190.390.770.540.020.97-0.970.980.2-0.880.950.920.230.510.29
0.741.00.840.40.50.490.770.730.930.58-0.110.640.270.47-0.11-0.110.24-0.30.82-0.520.890.67-0.660.630.710.790.990.80.930.780.960.58-0.650.821.00.890.79-0.050.58-0.180.530.970.010.630.020.980.990.99
0.950.52-0.050.990.51.00.910.920.770.99-0.910.850.891.0-0.91-0.910.92-0.980.9-1.00.360.970.320.48-0.240.430.630.550.730.710.72-0.410.32-0.080.490.840.590.00.98-0.941.00.32-0.850.960.870.350.60.4
0.950.51-0.060.990.491.00.920.930.760.99-0.920.880.861.0-0.92-0.920.91-0.970.9-1.00.390.970.330.53-0.240.460.630.580.740.740.72-0.420.34-0.090.480.830.620.070.98-0.941.00.31-0.840.960.880.340.60.39
0.990.80.320.860.770.910.920.980.930.95-0.680.950.650.91-0.68-0.680.71-0.80.98-0.930.720.99-0.040.760.160.760.860.840.940.930.91-0.05-0.030.280.760.960.860.180.94-0.740.930.63-0.550.960.630.650.850.71
0.980.750.260.90.730.920.930.980.920.95-0.730.960.70.93-0.73-0.730.78-0.820.97-0.950.660.980.030.70.080.70.830.790.910.890.89-0.120.030.220.720.950.810.130.97-0.780.940.56-0.590.990.680.590.820.66
0.930.930.580.710.930.770.760.930.920.83-0.460.820.560.75-0.46-0.460.57-0.620.96-0.790.790.88-0.340.650.410.740.980.80.980.861.00.25-0.330.560.930.990.81-0.050.84-0.520.790.83-0.340.860.380.840.960.88
0.970.60.050.970.580.990.990.950.950.83-0.870.880.850.99-0.87-0.870.88-0.950.94-1.00.450.990.230.55-0.150.510.70.630.80.770.79-0.320.240.010.570.880.660.030.98-0.911.00.41-0.790.970.820.440.670.49
-0.74-0.130.45-0.95-0.11-0.91-0.92-0.68-0.73-0.46-0.87-0.68-0.9-0.921.01.0-0.960.98-0.650.90.0-0.79-0.67-0.250.61-0.12-0.27-0.25-0.41-0.45-0.390.74-0.680.47-0.1-0.54-0.31-0.01-0.851.0-0.90.090.97-0.81-0.990.06-0.230.01
0.910.690.210.840.640.850.880.950.960.820.88-0.680.530.87-0.68-0.680.67-0.750.88-0.890.710.930.080.850.090.80.740.870.870.950.8-0.160.080.140.630.860.90.420.91-0.720.880.47-0.510.940.670.50.750.6
0.750.25-0.260.890.270.890.860.650.70.560.85-0.90.530.86-0.9-0.90.95-0.930.7-0.86-0.030.760.450.03-0.47-0.010.410.130.450.330.5-0.520.45-0.250.260.620.18-0.40.83-0.910.860.1-0.930.770.840.130.340.13
0.940.5-0.080.990.471.01.00.910.930.750.99-0.920.870.86-0.92-0.920.91-0.970.89-1.00.380.970.350.52-0.260.460.610.580.730.740.7-0.430.35-0.110.460.820.620.080.98-0.951.00.29-0.840.960.890.320.580.38
-0.74-0.130.45-0.95-0.11-0.91-0.92-0.68-0.73-0.46-0.871.0-0.68-0.9-0.921.0-0.960.98-0.650.90.0-0.79-0.67-0.250.61-0.12-0.27-0.25-0.41-0.45-0.390.74-0.680.47-0.1-0.54-0.31-0.01-0.851.0-0.90.090.97-0.81-0.990.06-0.230.01
-0.74-0.130.45-0.95-0.11-0.91-0.92-0.68-0.73-0.46-0.871.0-0.68-0.9-0.921.0-0.960.98-0.650.90.0-0.79-0.67-0.250.61-0.12-0.27-0.25-0.41-0.45-0.390.74-0.680.47-0.1-0.54-0.31-0.01-0.851.0-0.90.090.97-0.81-0.990.06-0.230.01
0.780.24-0.320.960.240.920.910.710.780.570.88-0.960.670.950.91-0.96-0.96-0.950.71-0.910.050.810.540.19-0.510.110.40.250.480.450.5-0.610.54-0.330.240.630.3-0.180.9-0.960.90.03-0.930.860.930.070.340.11
-0.85-0.320.26-0.98-0.3-0.98-0.97-0.8-0.82-0.62-0.950.98-0.75-0.93-0.970.980.98-0.95-0.790.96-0.16-0.89-0.51-0.340.45-0.25-0.45-0.38-0.57-0.57-0.560.58-0.510.29-0.29-0.7-0.430.03-0.920.99-0.96-0.120.94-0.88-0.95-0.15-0.41-0.19
0.990.840.380.840.820.90.90.980.970.960.94-0.650.880.70.89-0.65-0.650.71-0.79-0.910.690.97-0.120.660.20.690.90.780.950.870.950.02-0.110.350.820.990.80.010.93-0.710.920.69-0.550.940.580.720.890.76
-0.96-0.550.02-0.99-0.52-1.0-1.0-0.93-0.95-0.79-1.00.9-0.89-0.86-1.00.90.9-0.910.96-0.91-0.42-0.98-0.29-0.540.2-0.49-0.66-0.6-0.76-0.76-0.750.38-0.30.05-0.52-0.85-0.64-0.06-0.990.93-1.0-0.340.82-0.97-0.86-0.37-0.63-0.43
0.630.920.810.280.890.360.390.720.660.790.450.00.71-0.030.380.00.00.05-0.160.69-0.420.59-0.620.880.760.970.860.950.880.880.830.56-0.620.760.880.760.940.40.47-0.070.420.870.180.55-0.040.870.910.93
0.990.70.170.930.670.970.970.990.980.880.99-0.790.930.760.97-0.79-0.790.81-0.890.97-0.980.590.110.67-0.010.640.780.740.880.860.85-0.210.120.130.660.930.770.120.97-0.840.980.51-0.690.980.750.540.760.6
0.01-0.63-0.960.42-0.660.320.33-0.040.03-0.340.23-0.670.080.450.35-0.67-0.670.54-0.51-0.12-0.29-0.620.11-0.23-0.97-0.44-0.52-0.36-0.37-0.2-0.41-1.01.0-0.97-0.67-0.25-0.310.120.22-0.610.29-0.8-0.720.170.74-0.78-0.55-0.73
0.650.70.450.440.630.480.530.760.70.650.55-0.250.850.030.52-0.25-0.250.19-0.340.66-0.540.880.67-0.230.430.970.660.970.780.940.670.17-0.220.370.620.670.970.720.56-0.30.540.56-0.040.640.260.570.720.67
0.080.70.97-0.350.71-0.24-0.240.160.080.41-0.150.610.09-0.47-0.260.610.61-0.510.450.20.20.76-0.01-0.970.430.620.580.530.470.370.480.96-0.970.960.710.320.490.1-0.140.55-0.20.820.7-0.06-0.660.810.630.79
0.660.840.650.370.790.430.460.760.70.740.51-0.120.8-0.010.46-0.12-0.120.11-0.250.69-0.490.970.64-0.440.970.620.780.990.860.940.770.38-0.440.590.780.730.980.580.52-0.190.490.740.070.60.10.750.840.83
0.840.980.730.550.990.630.630.860.830.980.7-0.270.740.410.61-0.27-0.270.4-0.450.9-0.660.860.78-0.520.660.580.780.820.970.830.990.44-0.520.710.980.950.81-0.050.71-0.350.660.92-0.150.750.190.940.990.95
0.760.850.590.490.80.550.580.840.790.80.63-0.250.870.130.58-0.25-0.250.25-0.380.78-0.60.950.74-0.360.970.530.990.820.90.980.820.28-0.350.520.790.811.00.540.64-0.320.60.73-0.060.710.240.740.860.82
0.910.950.620.660.930.730.740.940.910.980.8-0.410.870.450.73-0.41-0.410.48-0.570.95-0.760.880.88-0.370.780.470.860.970.90.930.980.28-0.360.580.930.980.910.140.8-0.480.770.84-0.270.840.340.860.980.91
0.870.830.460.670.780.710.740.930.890.860.77-0.450.950.330.74-0.45-0.450.45-0.570.87-0.760.880.86-0.20.940.370.940.830.980.930.860.12-0.190.40.770.870.990.470.78-0.510.760.67-0.270.830.430.690.860.77
0.90.960.650.650.960.720.720.910.891.00.79-0.390.80.50.7-0.39-0.390.5-0.560.95-0.750.830.85-0.410.670.480.770.990.820.980.860.33-0.410.620.950.980.82-0.040.79-0.460.750.87-0.270.820.30.890.980.91
-0.110.560.93-0.510.58-0.41-0.42-0.05-0.120.25-0.320.74-0.16-0.52-0.430.740.74-0.610.580.020.380.56-0.21-1.00.170.960.380.440.280.280.120.33-1.00.940.590.160.23-0.12-0.310.69-0.380.730.78-0.26-0.80.710.470.66
0.02-0.63-0.960.43-0.650.320.34-0.030.03-0.330.24-0.680.080.450.35-0.68-0.680.54-0.51-0.11-0.3-0.620.121.0-0.22-0.97-0.44-0.52-0.35-0.36-0.19-0.41-1.0-0.97-0.66-0.24-0.30.120.23-0.620.3-0.79-0.730.170.74-0.77-0.55-0.73
0.230.81.0-0.190.82-0.08-0.090.280.220.560.010.470.14-0.25-0.110.470.47-0.330.290.350.050.760.13-0.970.370.960.590.710.520.580.40.620.94-0.970.830.480.48-0.110.020.41-0.050.920.550.08-0.550.90.740.87
0.730.990.840.391.00.490.480.760.720.930.57-0.10.630.260.46-0.1-0.10.24-0.290.82-0.520.880.66-0.670.620.710.780.980.790.930.770.950.59-0.660.830.890.78-0.070.58-0.170.520.970.020.620.010.980.990.99
0.960.90.50.770.890.840.830.960.950.990.88-0.540.860.620.82-0.54-0.540.63-0.70.99-0.850.760.93-0.250.670.320.730.950.810.980.870.980.16-0.240.480.890.82-0.010.88-0.610.850.78-0.430.90.470.80.940.83
0.780.840.550.540.790.590.620.860.810.810.66-0.310.90.180.62-0.31-0.310.3-0.430.8-0.640.940.77-0.310.970.490.980.811.00.910.990.820.23-0.30.480.780.820.540.67-0.370.640.71-0.120.740.290.720.860.8
0.060.04-0.030.02-0.050.00.070.180.13-0.050.03-0.010.42-0.40.08-0.01-0.01-0.180.030.01-0.060.40.120.120.720.10.58-0.050.540.140.47-0.04-0.120.12-0.11-0.07-0.010.540.04-0.020.06-0.080.150.110.1-0.080.040.04
0.960.60.050.970.580.980.980.940.970.840.98-0.850.910.830.98-0.85-0.850.9-0.920.93-0.990.470.970.220.56-0.140.520.710.640.80.780.79-0.310.230.020.580.880.670.04-0.890.980.39-0.750.990.810.420.680.48
-0.79-0.210.38-0.97-0.18-0.94-0.94-0.74-0.78-0.52-0.911.0-0.72-0.91-0.951.01.0-0.960.99-0.710.93-0.07-0.84-0.61-0.30.55-0.19-0.35-0.32-0.48-0.51-0.460.69-0.620.41-0.17-0.61-0.37-0.02-0.89-0.930.010.96-0.85-0.98-0.02-0.3-0.07
0.960.55-0.020.980.531.01.00.930.940.791.0-0.90.880.861.0-0.9-0.90.9-0.960.92-1.00.420.980.290.54-0.20.490.660.60.770.760.75-0.380.3-0.050.520.850.640.060.98-0.930.35-0.820.970.860.380.630.43
0.60.960.930.20.970.320.310.630.560.830.410.090.470.10.290.090.090.03-0.120.69-0.340.870.51-0.80.560.820.740.920.730.840.670.870.73-0.790.920.970.780.71-0.080.390.010.350.180.44-0.181.00.940.99
-0.630.00.54-0.880.01-0.85-0.84-0.55-0.59-0.34-0.790.97-0.51-0.93-0.840.970.97-0.930.94-0.550.820.18-0.69-0.72-0.040.70.07-0.15-0.06-0.27-0.27-0.270.78-0.730.550.02-0.43-0.120.15-0.750.96-0.820.18-0.69-0.960.15-0.10.13
0.970.650.110.950.630.960.960.960.990.860.97-0.810.940.770.96-0.81-0.810.86-0.880.94-0.97