The entity is active under
Communication Services sector as part of
Internet Content & Information industry.
TuanChe has a
performance score of 1 on a scale of 0 to 100. The entity has a beta of -0.0035, which indicates not very significant fluctuations relative to the market. Let's try to break down what TuanChe's beta means in this case. As returns on the market increase, returns on owning TuanChe are expected to decrease at a much lower rate. During the bear market, TuanChe is likely to outperform the market. Although it is important to respect
TuanChe Limited current price movements, it is better to be realistic regarding the information on the equity's historical returns. The philosophy towards measuring
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By inspecting
TuanChe Limited technical indicators, you can presently evaluate if the expected return of 0.0955% will be sustainable into the future.
TuanChe Limited right now has a risk of 5.28%. Please validate TuanChe
value at risk, and the
relationship between the
jensen alpha and
skewness to decide if TuanChe will be following its existing
price patterns.
Volatility is a rate at which the price of TuanChe ADR or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of TuanChe ADR may increase or decrease. In other words, similar to TuanChe's
beta indicator, it measures the risk of TuanChe ADR and helps estimate the fluctuations that may happen in a short period of time. So if prices of TuanChe ADR fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our
technical analysis page.
How important is TuanChe ADR's Liquidity
TuanChe ADR
financial leverage refers to using borrowed capital as a funding source to finance TuanChe ADR ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. TuanChe ADR 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 TuanChe ADR'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 TuanChe ADR'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 TuanChe ADR's total debt and its cash.
TuanChe ADR Gross Profit
TuanChe ADR Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing TuanChe ADR 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 TuanChe ADR Gross Profit growth over the last 10 years. Please check TuanChe ADR's
gross profit and other
fundamental indicators for more details.
TuanChe ADR Volatility Drivers
TuanChe ADR unsystematic risk is unique to TuanChe ADR and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in TuanChe ADR you can also buy
Twilio Inc. You can also mitigate this risk by investing in the communication services sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing TuanChe ADR important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in TuanChe ADR income statement and balance sheet. Here are more
details about TuanChe volatility.
Click cells to compare fundamentals
Is TuanChe ADR valued correctly by the market?
The firm generated the yearly revenue of 357.55
M. Annual Net Loss to common stockholders was (101.94
M) with gross profit of 272.26
M.
Some TuanChe technical indicators suggest bounce back
The value at risk is down to -7.93 as of today. TuanChe Limited exhibits very low volatility with skewness of 0.52 and kurtosis of 2.0. However, we advise investors to further study TuanChe Limited technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure TuanChe's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact TuanChe's 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.
TuanChe Implied Volatility
TuanChe's implied volatility exposes the market's sentiment of TuanChe Limited stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if TuanChe's 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 TuanChe stock will not fluctuate a lot when TuanChe's options are near their expiration.
Our Final Take On TuanChe
Whereas some other entities within the internet content & information industry are still a little expensive, even after the recent corrections, TuanChe may offer a potential longer-term growth to investors. To sum up, as of the 1st of July 2022, our up-to-date 90 days buy-hold-sell recommendation on the company is
Cautious Hold. We believe TuanChe is
overvalued with
below average chance of financial distress for the next two years.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
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 TuanChe ADR. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com