The recent price change of Metals Acquisition Limited Stock, a notable player in the copper industry, has sparked a wave of discussions among investors. The stock's price has seen a minor dip of
-0.12, which may be a cause for concern for some, but it's crucial to remember that investment is a long-term game. The company's potential upside of
4.85 suggests that there's room for growth and profit in the future. The company's total risk alpha stands at
0.1221, indicating that it has the potential to provide a decent return relative to the risk it carries. However, the negative Jensen Alpha of
-0.09 suggests that the company's risk-adjusted performance could be better. The Treynor Ratio of
0.1493 also indicates that the company's returns, given its systematic risk, are satisfactory. In conclusion, while Metals Acquisition Limited Stock has shown some volatility, its potential upside and risk-adjusted performance metrics suggest that it could be a worthy addition to a diversified portfolio. Investors should keep a close eye on this stock and consider whether it aligns with their investment strategy and risk tolerance.
Main Points
Metals Acquisition Corp. has a Beta (Market Risk) of -0.4521, suggesting potential diversification benefits within a portfolio. As market returns increase, returns on Metals Acquisition Corp. are expected to decrease at a significantly lower rate. In a bear market, Metals Acquisition Corp. is likely to outperform the market. The company presents fifteen different technical indicators that can assist in evaluating its performance. Metals Acquisition Corp. has an expected return of -0.0834%. It is crucial to verify Metals Acquisition Corp.'s standard deviation, as well as the relationship between the maximum drawdown and kurtosis to determine if past performance of Metals Acquisition Corp. will be replicated at some point in the near future.
The successful prediction of Metals Acquisition
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as Metals Acquisition Limited, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of Metals Acquisition based on Metals Acquisition hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to Metals Acquisition's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Metals Acquisition's related companies.
Use Technical Analysis to project Metals expected Price
Metals Acquisition technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Metals Acquisition technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Metals Acquisition trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...Metals Acquisition Gross Profit
Metals Acquisition Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Metals Acquisition 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 Metals Acquisition Gross Profit growth over the last 10 years. Please check Metals Acquisition's
gross profit and other
fundamental indicators for more details.
Breaking down Metals Acquisition Indicators
The small slide in market price for the last few months may encourage institutional investors to take a closer look at the firm as it is trading at a share price of
10.40 on very low momentum in trading volume. The company directors and management did not add much value to Metals Acquisition investors in
October. However, diversifying your holdings with Metals Acquisition or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.71. The current volatility is consistent with the ongoing market swings in
October 2023 as well as with Metals Acquisition unsystematic, company-specific events.
Cost of Revenue Breakdown
Metals Acquisition Cost of Revenue yearly trend continues to be quite stable with very little volatility. The value of Cost of Revenue is projected to decrease to about 179.7
M. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Where this item is not contained on the company consolidated financial statements and cannot otherwise be imputed the value of 0 is used. At this time, Metals Acquisition's Cost of Revenue is quite stable as compared to the past year.
| 2010 | 190.15 Million |
| 2022 | 189.5 Million |
| 2023 | 179.66 Million |
"High returns come at a high risk," a proverb that resonates deeply with the current situation of Metals Acquisition Limited stock. With a market capitalization of
503.46M and a total debt of 786.1K, the company's financial status is not as stable as one might hope, reflected in a probability of bankruptcy at a staggering 73.99%. Furthermore, the company's return on asset stands at a negative 0.005, indicating losses in asset efficiency. The company's total risk alpha of 0.1221 and maximum drawdown of 15.95 suggest a high-risk investment. However, with a price to book ratio of 1.32X and a target price of $15, there may be potential upside for investors who are willing to take on the risk. Additionally, the company's EBITDA of
3.8M and current ratio of 1.69X indicate a positive cash flow. In conclusion, Metals Acquisition Limited stock is a high-risk, high-return investment that requires careful consideration and risk tolerance.
Will Metals slide impact its fundamentals?
The total risk alpha of Metals Acquisition Limited has recently decreased to 0.12, signaling a potential decline in volatility. This development could significantly affect the company's fundamentals. A lower risk alpha typically indicates that the stock is less risky compared to the market, but it also suggests that the potential for high returns might be limited. Investors should closely monitor this situation, as a persistent decrease in volatility could affect the company's ability to deliver strong
financial performance in the future. Metals Acquisition Limited displays very low volatility, with a skewness of 0.12 and a kurtosis of 1.96. However, we recommend investors to further examine Metals Acquisition Limited's technical indicators to ensure that all market information is available and reliable. Understanding various
market volatility trends often assists investors in timing the market. Proper use of volatility indicators allows traders to measure Metals Acquisition's stock risk against market volatility during both bullish and bearish trends.
The increased level of volatility that accompanies bear markets can directly impact
Metals Acquisition's stock price, adding stress to investors as they witness their shares' value decrease. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. Despite Metals Acquisition Limited (MTAL) experiencing a 1 percent decrease, it's important to note that the company still holds a strong market valuation of
10.4 and a real value of
11.29. The Analyst Overall Consensus indicates a 'Strong Buy' with both analysts giving a 'Strong Buy' recommendation. The estimated target price ranges from 13 to 14, with a possible upside price of 12.94, suggesting significant potential for growth. The EPS estimate for the next fiscal year, ending in December, is 0.1. While there may be a potential downside price of 7.53, the strong buy consensus and positive future EPS estimate indicate a promising outlook for MTAL. .
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Metals Acquisition Limited. Please refer to our
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