NIO is OVERVALUED at 7.73 per share with modest projections ahead. NIO is unstable given 1 month investment horizon.
NIO Inc has Sharpe Ratio of 0.3, which conveys that the firm had 0.3% of return per unit of volatility over the last month. Our approach towards estimating the volatility of a stock is to use
NIO Inc market data together with company specific
technical indicators. We were able to collect and analyze data for twenty-one different
technical indicators, which can help you to evaluate if expected returns of 2.46% are justified by taking the suggested risk. Use NIO Inc
mean deviation of 6.58, and
risk adjusted performance of 0.4793 to evaluate company specific risk that cannot be
diversified away.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Nio income statement, its balance sheet, and the statement of cash flows. Potential Nio investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Nio investors may use each financial statement separately, they are all related. The changes in Nio's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Nio's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Nio
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Nio performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Nio shares is the value that is considered the true value of the share. If
the intrinsic value of Nio is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Nio. Please read more on our
fundamental analysis page.
How effective is Nio in utilizing its assets?
Nio Class A reports assets on its Balance Sheet. It represents the amount of Nio resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Nio aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Automobile Manufacturers space. To get a better handle on how balance sheet or income statements item affect Nio volatility, please check the breakdown of all its
fundamentals.
Are Nio Earnings Expected to grow?
The
future earnings power of Nio involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Nio factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Nio
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Nio
expected earnings.
Nio Gross Profit
Nio Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Nio 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 Nio Gross Profit growth over the last 10 years. Please check Nio's
gross profit and other
fundamental indicators for more details.
Breaking down the case for Nio
The latest price spikes of NIO Inc may encourage institutional investors to take a closer look at the firm as it closed today at a share price of
10.46 on
289,518,000 in trading volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in
August. The stock standard deviation of daily returns for 30 days investing horizon is currently 8.2. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the NIO Inc partners.
| 2010 | 2019 | 2020 (projected) |
Revenues USD | 716.52 M | 1.12 B | 1.12 B | Revenues | 4.95 B | 7.82 B | 7.82 B |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. NIO has an asset utilization ratio of 13.26 percent. This suggests that the company is making $0.13 for each dollar of assets. An increasing asset utilization means that NIO Inc is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets6.4 B | Assets Non Current7.9 B | |
| Current Assets | 6.4 Billion | 44.25 |
| Assets Non Current | 7.89 Billion | 54.54 |
| Goodwill | 174.14 Million | 1.2 |
Will NIO continue to go insane?
Latest mean deviation is at 6.58. NIO Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize NIO Inc independently to ensure intended market timing strategies are aligned with expectations about NIO volatility.
Our Bottom Line On NIO Inc
Whereas some other entities within the auto manufacturers industry are still a little expensive, even after the recent corrections, NIO may offer a potential longer-term growth to institutional investors. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither buy new shares of NIO nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to NIO.
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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 Nio Class A. Please refer to our
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