MOGU Story

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MOGU Share Based Compensation is comparatively stable at the moment as compared to the past year. MOGU reported Share Based Compensation of 32.19 Million in 2019. Accumulated Other Comprehensive Income is likely to gain to about 29.2 M in 2020, whereas Free Cash Flow is likely to drop (345.5 M) in 2020. The rationale behind this perspective is to forecast a future value of MOGU using technical analysis. What exactly are MOGU private investors should expect in September?
Published over a month ago
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Are MOGU (NYSE:MOGU) private investors starting to hold back?
The company has a beta of -1.2864. Let's try to break down what MOGU's beta means in this case. The returns on MARKET and MOGU are completely uncorrelated. The beta indicator helps investors understand whether MOGU 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 MOGU deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.

How important is MOGU's Liquidity

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

How MOGU utilizes its cash?

To perform a cash flow analysis of MOGU, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash MOGU is receiving and how much cash it distributes out in a given period. The MOGU cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. MOGU Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. MOGU reported Net Cash Flow from Operations of (311.79 Million) in 2019

Breaking down MOGU Indicators

MOGU Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize MOGU Inc independently to ensure intended market timing strategies are aligned with expectations about MOGU volatility.

Returns Breakdown

Return on Assets(0.68)
Return on Equity(2.02)
Return Capital(12.85)
Return on Sales(2.73)

MOGU implied volatility may change after the gain

MOGU newest downside variance boosts over 68.94. MOGU Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize MOGU Inc independently to ensure intended market timing strategies are aligned with expectations about MOGU volatility.

Our Bottom Line On MOGU Inc

Whereas some firms within the internet retail industry are still a little expensive, even after the recent corrections, MOGU may offer a potential longer-term growth to private investors. In closing, as of the 23rd of August 2020, we believe that at this point, MOGU is overvalued with average chance of financial distress within the next 2 years. Our latest Buy-Hold-Sell recommendation on the firm 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 Achuva Shats do not own shares of MOGU Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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