The latest price spike of Fisker Inc could raise concerns from retail investors as the firm it trading at a share price of 28.50 on 111,604,400 in volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in March. The stock standard deviation of daily returns for 30 days investing horizon is currently 7.95. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Fisker partners.
Fisker (NYSE:FSR) high volatility trend continues
 | By Ellen Johnson | Macroaxis Story |
Fisker is generating 0.8941% of daily returns assuming volatility of 7.9512% on return distribution over 90 days investment horizon. As many conservative investors are still indifferent towards latest market risk, it is prudent, from our point of view, to sum up Fisker's current volatility. We are going to discuss if the current expected returns justify Fisker's volatility. The latest Fisker risk factors may impact the value of the stock as we estimate Fisker as currently overvalued. The real value is approaching 21.90 per share.
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Reviewed by Gabriel Shpitalnik
This firm has 10.96 M in debt with debt to equity (D/E) ratio of 0.3, which may show that Fisker is not taking advantage of profits from borrowing. The company has a current ratio of 0.5, suggesting that it has not enough short term capital to pay financial commitments when the payables are due.
On a scale of 0 to 100, Fisker holds a performance score of 7. The firm shows a Beta (market volatility) of -2.3032, which means a somewhat significant risk relative to the market. Let's try to break down what Fisker's beta means in this case. As returns on the market increase, returns on owning Fisker are expected to decrease by larger amounts. On the other hand, during market turmoil, Fisker is expected to outperform it. Although it is vital to follow Fisker Inc historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-seven technical indicators for Fisker Inc, which you can use to evaluate the performance of the firm. Please utilizes Fisker Inc value at risk, as well as the relationship between the skewness and day median price to make a quick decision on whether Fisker price patterns will revert.
Volatility is a rate at which the price of Fisker 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 Fisker may increase or decrease. In other words, similar to Fisker's beta indicator, it measures the risk of Fisker and helps estimate the fluctuations that may happen in a short period of time. So if prices of Fisker 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. Watch out for price decline
Please consider monitoring Fisker on a daily basis if you are holding a position in it. Fisker is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Fisker stock to be traded above the $1 level to remain listed. If Fisker stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Fisker's Liquidity
Fisker financial leverage refers to using borrowed capital as a funding source to finance Fisker Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Fisker 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 Fisker'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 Fisker'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 Fisker's total debt and its cash.
Fisker Gross Profit
Fisker Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Fisker 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 Fisker Gross Profit growth over the last 10 years. Please check Fisker's gross profit and other fundamental indicators for more details.
Fisker Volatility Drivers
Fisker unsystematic risk is unique to Fisker Inc 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 Fisker you can also buy Lucid Group. You can also mitigate this risk by investing in the consumer discretionary 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 Fisker 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 Fisker income statement and balance sheet. Here are more details about Fisker volatility.Click cells to compare fundamentals
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