This firm has a beta of 2.9704. Let's try to break down what Mogo'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, Mogo will likely underperform. The beta indicator helps investors understand whether Mogo moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Mogo deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as Mogo Inc. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the
market sentiment and impact your forecasting results.
Predictive Modules for Mogo
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Mogo's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Mogo. Your research has to be compared to or analyzed against Mogo's peers to derive any actionable benefits. When done correctly, Mogo's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Mogo Inc.
How important is Mogo's Liquidity
Mogo
financial leverage refers to using borrowed capital as a funding source to finance Mogo Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Mogo 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 Mogo'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 Mogo'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 Mogo's total debt and its cash.
Mogo Gross Profit
Mogo Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Mogo 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 Mogo Gross Profit growth over the last 10 years. Please check Mogo's
gross profit and other
fundamental indicators for more details.
What is driving Mogo Investor Appetite?
The latest price rise of Mogo Inc may encourage institutional investors to take a closer look at the firm as it is trading at a share price of
9.85 on
5,168,185 in trading volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in
May. The stock standard deviation of daily returns for 30 days investing horizon is currently 10.94. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Mogo Inc partners.
Returns Breakdown
| Return on Assets | (0.0943) |
| Return on Equity | 3.87 |
| Return Capital | (0.0558) |
| Return on Sales | (0.17) |
Over 3 percent rise for Mogo. What does it mean for institutional investors?
Mogo latest semi variance surges over 54.73. Mogo Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize Mogo Inc independently to ensure intended market timing strategies are aligned with expectations about Mogo volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Mogo'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 Mogo'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.
Our Conclusion on Mogo
Whereas many of the other players under the software—application industry are still a bit expensive, Mogo may offer a potential longer-term growth to institutional investors. To summarize, as of the 1st of April 2021, our analysis shows that Mogo hyperactively responds to market trends. The company is
undervalued and projects
below average probability of bankruptcy for the next 2 years. Our primary 30 days 'Buy-Sell' recommendation on the company 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 Mogo Inc. Please refer to our
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