By analyzing existing basic indicators between Microvast Hldgs and Belden, 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 Belden with a short position in Microvast Hldgs. 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 Microvast is to check how much profit was generated for every dollar of assets it reports. Microvast Hldgs secures a negative usage of assets of -17.88 %, losing $0.18 for each dollar of assets held by the firm. Inadequate asset utilization conveys that the company is being less effective with each dollar of assets it secures. Strictly speaking, asset utilization of Microvast Hldgs shows how discouraging it operates for each dollar spent on its assets.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Microvast Holdings. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Microvast Holdings, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
Watch out for price decline
Please consider monitoring Microvast Holdings on a daily basis if you are holding a position in it. Microvast Holdings is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Microvast Holdings stock to be traded above the $1 level to remain listed. If Microvast Holdings stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Microvast Holdings's Liquidity
Microvast Holdings
financial leverage refers to using borrowed capital as a funding source to finance Microvast Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Microvast Holdings 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 Microvast Holdings' 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 Microvast Holdings' 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 Microvast Holdings's total debt and its cash.
Another Deeper Perspective
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 Microvast Hldgs revenue. Based on the latest financial disclosure, Microvast Hldgs reported 151.98
M of revenue. This is 95.66% lower than that of the Industrials sector and significantly higher than that of the
Electrical Equipment & Parts industry. The revenue for all United States stocks is 98.39% higher than that of Microvast Hldgs. As for Belden we see revenue of 2.41
B, which is much higher than that of the Electrical Equipment & Parts
| MVST | 151.98 Million | 5.93 |
| Sector | 0.0 | 0.0 |
| BDC | 2.41 Billion | 94.07 |
Will Microvast Hldgs newest gain continue?
Maximum drawdown is down to 33.74. It may call for a possible volatility drop. Microvast Hldgs is displaying above-average volatility over the selected time horizon. Investors should scrutinize Microvast Hldgs independently to ensure intended market timing strategies are aligned with expectations about Microvast Hldgs volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Microvast Hldgs' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Microvast Hldgs' 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.
Microvast Hldgs Implied Volatility
Microvast Hldgs' implied volatility exposes the market's sentiment of Microvast Hldgs stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Microvast Hldgs' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Microvast Hldgs stock will not fluctuate a lot when Microvast Hldgs' options are near their expiration.
Our Conclusion on Microvast Hldgs
Whereas some companies in the electrical equipment & parts industry are either recovering or due for a correction, Microvast may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 21st of May 2022, our analysis shows that Microvast Hldgs responds to the market. The firm is
undervalued and projects
below average chance of financial distress for the next 2 years. Our primary 90 days buy-or-sell advice on the firm is
Cautious 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 Microvast Holdings. Please refer to our
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