By analyzing existing fundamental drivers between Embark Technology and Salesforce, 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 Salesforce with a short position in Embark Technology. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
One of the ways to look at asset utilization of Embark is to check how much profit was generated for every dollar of assets it reports. Embark Technology shows a negative utilization of assets of -49.25 percent, losing $0.49 for each dollar of assets held by the firm. Unsuccessful asset utilization denotes the company is being less effective with each dollar of assets it shows. Put another way, asset utilization of Embark Technology shows how unproductive it operates for each dollar spent on its assets.
How important is Embark Technology's Liquidity
Embark Technology
financial leverage refers to using borrowed capital as a funding source to finance Embark Technology ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Embark Technology 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 Embark Technology'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 Embark Technology'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 Embark Technology's total debt and its cash.
Breaking down Embark Technology Further
Cash and Equivalents Breakdown
Let me now analyze Embark Technology cash and equivalents. In accordance with the recently published financial statements, Embark Technology has 245.06
M in Cash and Equivalents. This is 80.38% lower than that of the Technology sector and significantly higher than that of the
Software—Application industry. The cash and equivalents for all United States stocks is 90.93% higher than that of Embark Technology. As for Salesforce we see cash and equivalents of 13.5
B, which is much higher than that of the Software—Application
| EMBK | 245.06 Million | 1.78 |
| Sector | 0.0 | 0.0 |
| CRM | 13.5 Billion | 98.22 |
Are Embark Technology technical ratios showing a recoup?
Recent treynor ratio is at 0.14. Embark Technology is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about Embark Technology implied risk. Embark Technology is a potential penny stock. Although Embark Technology may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Embark Technology. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Embark instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
Our Final Takeaway
Although many other companies in the software—application industry are either recovering or due for a correction, Embark Technology may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 13th of August 2022, we believe Embark Technology is currently
undervalued. It hyperactively responds to market trends and projects
low probability of financial unrest in the next two years. Our final 90 days 'Buy-vs-Sell' recommendation on the firm is
Cautious Hold.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, 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 Vlad Skutelnik do not own shares of Embark Technology. Please refer to our
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