By analyzing existing technical and fundamental indicators between Canoo and Ayro, 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 Ayro with a short position in Canoo. 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 Canoo is to check how much profit was generated for every dollar of assets it reports. Canoo Inc shows a negative utilization of assets of -44.05 percent, losing $0.44 for each dollar of assets held by the firm. Inadequate asset utilization signifies that the company is being less effective with each dollar of assets it shows. Put another way, asset utilization of Canoo Inc shows how discouraging it operates for each dollar spent on its assets.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Canoo or Hyzon is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Canoo's Liquidity
Canoo
financial leverage refers to using borrowed capital as a funding source to finance Canoo Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Canoo 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 Canoo'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 Canoo'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 Canoo's total debt and its cash.
Correlation Between Canoo and Hyzon Motors
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Canoo together with similar or unrelated positions with a negative correlation. For example, you can also add Hyzon Motors to your portfolio. If Hyzon Motors is not perfectly correlated to Canoo it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Canoo, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Canoo and Hyzon Motors in your portfolio? Please note if you are using this as a pair-trade strategy between Canoo and Hyzon Motors, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between GOEV and HYZN for more information.
What is driving Canoo Investor Appetite?
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check Canoo revenue. Based on the latest financial disclosure, Canoo Inc reported 2.55
M of revenue. This is 99.96% lower than that of the Consumer Cyclical sector and 100.0% lower than that of the
Auto Manufacturers industry. The revenue for all United States stocks is 99.97% higher than that of Canoo. As for Ayro we see revenue of 2.68
M, which is 100.0% lower than that of the Auto Manufacturers
| GOEV | 2.55 Million | 0.0357 |
| Sector | 7.13 Billion | 99.93 |
| AYRO | 2.68 Million | 0.0376 |
Does Canoo have cash to continue?
Latest Total Risk Alpha is up to 0.04. Price may fall again.
As of the 21st of May, Canoo shows the
mean deviation of 4.69, and Risk Adjusted Performance of
(0.15). Canoo Inc
technical analysis gives you the methodology to make use of
historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We were able to analyze and collect data for nineteen
technical drivers for Canoo Inc, which can be compared to its rivals. Please confirm
Canoo Inc coefficient of variation,
treynor ratio, as well as the
relationship between the Treynor Ratio and
semi variance to decide if Canoo Inc is priced correctly, providing market reflects its regular price of 3.38 per share. Given that Canoo has
jensen alpha of
(0.34), we suggest you to validate Canoo Inc's prevailing market performance to make sure the company can sustain itself at a future point.
Our Bottom Line On Canoo Inc
While some companies in the auto manufacturers industry are either recovering or due for a correction, Canoo may not be as strong as the others in terms of longer-term growth potentials. The bottom line, as of the 21st of May 2022, we believe that at this point, Canoo is
undervalued with
below average chance of distress within the next 2 years. Our overall 'Buy-vs-Sell' recommendation on the venture is
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 Canoo Inc. Please refer to our
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