Laix Inc Story

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LAIX -- USA Stock  

USD 2.60  0.09  3.35%

LAIX is currently generating 1.967% in daily expected returns and assumes 9.9939% risk (volatility on return distribution) over the 90 days horizon. While some risk-loving traders are indifferent towards current market volatility, it is reasonable to break down the risk of investing in LAIX Inc. We will cover the possibilities of LAIX's current volatility to continue through March. The current LAIX risk factors may impact the value of the stock as we estimate LAIX as currently overvalued. The real value is approaching 2.21 per share.
Published over two weeks ago
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Will LAIX continue to slide in March?
LAIX Inc currently holds roughly 49.3 M in cash with (17.1 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.48, which can makes it an attractive takeover target, given it will continue generating positive cash flow. LAIX holds a performance score of 13 on a scale of zero to a hundred. The firm secures a Beta (Market Risk) of 1.2059, which conveys a somewhat significant risk relative to the market. Let's try to break down what LAIX's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, LAIX will likely underperform. Although it is essential to pay attention to LAIX Inc price patterns, it is also good to be reasonable about what you can do with equity historical price patterns. Our approach towards estimating 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 LAIX expected return of 1.97 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use LAIX Inc downside deviation, jensen alpha, as well as the relationship between the Jensen Alpha and downside variance to analyze future returns on LAIX Inc.
Volatility is a rate at which the price of Laix Inc 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 Laix Inc may increase or decrease. In other words, similar to Laix Inc's beta indicator, it measures the risk of Laix Inc and helps estimate the fluctuations that may happen in a short period of time. So if prices of Laix Inc 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 Laix Inc's Liquidity

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

How Laix Inc utilizes its cash?

To perform a cash flow analysis of Laix Inc, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Laix Inc is receiving and how much cash it distributes out in a given period. The Laix Inc cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Laix Inc Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Laix Inc reported Net Cash Flow from Operations of (133.35 Million) in 2020

Laix Inc Volatility Drivers

Laix Inc unsystematic risk is unique to Laix Inc ADR 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 Laix Inc you can also buy China Distance Education. You can also mitigate this risk by investing in the education & training services 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 Laix Inc 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 Laix Inc income statement and balance sheet. Here are more details about Laix Inc volatility.
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