Microvast Stock Story


USD 2.22  0.06  2.78%   

As many millenniums are getting more into industrials space, we are going to review Microvast Hldgs and Belden as potential short-term trade. We are going to break down some of the competitive aspects of both Microvast and Belden.
Published over a month ago
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Is Microvast riskier than Belden Inc (NYSE:BDC)?
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.

How important is Microvast Hldgs's Liquidity

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

How does Microvast utilize its cash?

To perform a cash flow analysis of Microvast Hldgs, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Microvast Hldgs is receiving and how much cash it distributes out in a given period. The Microvast Hldgs cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Microvast Hldgs Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Microvast Hldgs reported Net Cash Flow from Operations of (45.04 Million) in 2021

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

2.4 B
MVST151.98 Million5.93
BDC2.41 Billion94.07

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.

Editorial Staff

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 Hldgs. Please refer to our Terms of Use for any information regarding our disclosure principles.

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