The entity reports 15.88
M of total liabilities with total debt to equity ratio (D/E) of 0.11, which may suggest TuanChe ADR is not taking enough advantage from financial leverage. The firm has a current ratio of 1.18, indicating that it may have difficulties to pay its debt commitments in time. Debt can assist TuanChe ADR until it has trouble settling it off, either with new capital or with free cash flow. So, TuanChe ADR's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like TuanChe ADR sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for TuanChe to invest in growth at high rates of return. When we think about TuanChe ADR's use of debt, we should always consider it together with cash and equity.
The entity has a beta of -0.0108, 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 ADR are expected to decrease at a much lower rate. During the bear market, TuanChe ADR is likely to outperform the market. Even though it is essential to pay attention to
TuanChe ADR current price movements, it is always good to be careful when utilizing equity historical returns. Our philosophy towards measuring any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. TuanChe ADR exposes twenty-one different technical indicators, which can help you to evaluate its performance.
TuanChe ADR has an expected return of -0.5%. Please be advised to validate TuanChe ADR
variance, as well as the
relationship between the value at risk and
skewness to decide if
TuanChe ADR performance from the past will be repeated at some point in the near future.
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
Alphabet Inc Class C. 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?
TuanChe ADR 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.
| 2020 | 2021 | 2022 | 2023 (projected) |
Current Assets | 311.4 M | 205.71 M | 236.57 M | 308.27 M | Total Assets | 474.41 M | 353.07 M | 406.04 M | 433.97 M |
Our take on TuanChe ADR to bounce back
The maximum drawdown is down to 33.64 as of today.
As of the 8th of March, TuanChe ADR has the
coefficient of variation of
(825.79), and Risk Adjusted Performance of
(0.10). In relation to
fundamental indicators, the
technical analysis model makes it possible for you to check existing technical drivers of TuanChe ADR, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to break down nineteen
technical drivers for TuanChe ADR, which can be compared to its competition. Please validate
TuanChe ADR variance, as well as the
relationship between the value at risk and
skewness to decide if TuanChe ADR is priced more or less accurately, providing market reflects its prevalent price of 0.57 per share. As
TuanChe ADR is a penny stock we also advise to double-check its
total risk alpha numbers.
The Current Takeaway on TuanChe ADR Investment
Although some companies in the internet content & information industry are either recovering or due for a correction, TuanChe ADR may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 8th of March 2023, we believe that TuanChe ADR is currently
overvalued with
quite high odds of distress in the next two years. Our overall 90 days buy-hold-sell advice on the firm is
Strong Sell.
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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 TuanChe ADR. Please refer to our
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