Fisker Story

<div class='circular--portrait' style='background:#347AFC;color: #ffffff;font-size:3em;'>FSR</div>
FSR -- USA Stock  

USD 12.37  0.76  5.79%

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.
Published over a month ago
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Fisker (NYSE:FSR) high volatility trend continues
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.

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. Please check the breakdown between Fisker's total debt and its cash.

How Fisker utilizes its cash?

To perform a cash flow analysis of Fisker, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Fisker is receiving and how much cash it distributes out in a given period. The Fisker cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Fisker Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Fisker reported last year Net Cash Flow from Operations of (38.01 Million)

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 Niu Technologies ADR. You can also mitigate this risk by investing in the auto manufacturers 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

Another Deeper Perspective

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.

Over 3 percent spike for Fisker. What does it mean for retail investors?

Latest risk adjusted performance is at 0.11. Fisker Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize Fisker Inc independently to ensure intended market timing strategies are aligned with expectations about Fisker volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Fisker's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Fisker's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

While some firms under the auto manufacturers industry are still a bit expensive, Fisker may offer a potential longer-term growth to retail investors. To conclude, as of the 27th of February 2021, we see that Fisker moves completely opposite to the market. The enterprise is overvalued with below average probability of distress within the next 24 months. Our actual 30 days buy-or-sell advice on the enterprise is Strong Sell.

About Contributor

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 Ellen Johnson do not own shares of Fisker Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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