Evolving Story

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EVOL -- USA Stock  

USD 2.24  0.04  1.75%

70% of stocks are less volatile than Evolving, and 82% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon. While many risk-averse stakeholders are getting carried away by overanalyzing technology space, it is reasonable to summarize Evolving Systems. We will summarize how risky is to take a position in Evolving Systems at this time. The new Evolving risk factors may impact the value of the stock as we estimate Evolving Systems as currently undervalued. The real value is approaching 4.03 per share.
Published over a month ago
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Breaking down Evolving volatility
Evolving Systems currently holds 1.72 M in liabilities with Debt to Equity (D/E) ratio of 0.19, which may suggest the firm is not taking enough advantage from borrowing. The entity has a current ratio of 1.57, which is within standard range for the sector.
Evolving Systems holds a performance score of 8 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of -1.1348, which means a somewhat significant risk relative to the market. Let's try to break down what Evolving's beta means in this case. As the market becomes more bullish, returns on owning Evolving Systems are expected to decrease slowly. On the other hand, during market turmoil, Evolving Systems is expected to outperform it slightly. Although it is vital to follow Evolving Systems historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. Our philosophy towards predicting future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if Evolving Systems expected return of 1.04 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use Evolving Systems semi variance, and the relationship between the treynor ratio and daily balance of power to analyze future returns on Evolving Systems.
Volatility is a rate at which the price of Evolving Systems 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 Evolving Systems may increase or decrease. In other words, similar to Evolving's beta indicator, it measures the risk of Evolving Systems and helps estimate the fluctuations that may happen in a short period of time. So if prices of Evolving Systems 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 Evolving Systems's Liquidity

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

How Evolving utilizes its cash?

To perform a cash flow analysis of Evolving Systems, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Evolving Systems is receiving and how much cash it distributes out in a given period. The Evolving Systems cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Evolving Systems 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 2.14 Million

Evolving Systems Volatility Drivers

Evolving Systems unsystematic risk is unique to Evolving Systems 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 Evolving Systems you can also buy DATA STORAGE CORP. You can also mitigate this risk by investing in the software?application 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 Evolving Systems 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 Evolving Systems income statement and balance sheet. Here are more details about Evolving volatility.