Sky Solar is very risky given 1 month investment horizon.
Sky Solar Holdings owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.17, which indicates the firm had 0.17% of return per unit of risk over the last month. Our standpoint towards measuring the risk of a stock is to use both market data as well as company specific technical data. We are able to interpolate and collect twenty-eight different
technical indicators, which can help you to evaluate if expected returns of 1.8% are justified by taking the suggested risk. Use Sky Solar Holdings Coefficient Of Variation of 897.4,
risk adjusted performance of 0.136, and Semi Deviation of 5.51 to evaluate company specific risk that cannot be
diversified away.
How important is Sky Solar's Liquidity
Sky Solar
financial leverage refers to using borrowed capital as a funding source to finance Sky Solar Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Sky Solar 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 Sky Solar's 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 Sky Solar's 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 Sky Solar's total debt and its cash.
Details
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Sky Solar is not uncomon. Institutional investor usually refers to an organization that invests money in Sky Solar on behalf of clients or other money managers. Buying and selling of large positions of Sky Solar stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Sky Solar stock. Let's take a look at how the ownership of Sky Solar is distributed among investors.
Ownership Allocation
Sky Solar Holdings shows a total of twenty million nine hundred eighty thousand
outstanding shares. Sky Solar Holdings maintains significant amount of outstanding shares owned by
insiders. An
insider is usually defined as a CEO, other corporate executive, director, or
institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how much assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.
| Retail Investors69.09% | Insiders25.53% | Institutions5.38% |
| Retail Investors | 69.09 |
| Insiders | 25.53 |
| Institutions | 5.38 |
Our take on today Sky Solar spike
Latest coefficient of variation is at 897.4. Sky Solar Holdings is displaying above-average volatility over the selected time horizon. Investors should scrutinize Sky Solar Holdings independently to ensure intended market timing strategies are aligned with expectations about Sky Solar volatility.
Our Bottom Line On Sky Solar Holdings
While few other entities within the utilities—renewable industry are still a little expensive, even after the recent corrections, Sky Solar may offer a potential longer-term growth to retail investors. To sum up, as of the 26th of September 2020, we believe that at this point, Sky Solar is
overvalued with
below average probability of distress within the next 2 years. Our ongoing Buy-Hold-Sell recommendation on the enterprise is
Strong Sell.
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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 Sky Solar Holdings. Please refer to our
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