Workhorse Story

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WKHS -- USA Stock  

USD 23.51  0.66  2.89%

It looks like Toyota will continue to recover much faster as its share price surged up 2.48% today to Workhorse's 11.545%. While some millenniums may be indifferent towards consumer cyclical space, we will examine how invariable are Workhorse fundamentals compared to Toyota. We are going to discuss some of the competitive aspects of both Workhorse and Toyota.
Published over three months ago
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Are Workhorse (NASDAQ:WKHS) retail investors shifting to Toyota (NYSE:TM)?
By analyzing existing technical indicators between Workhorse and Toyota, 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 Toyota with a short position in Workhorse. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Workhorse has an asset utilization ratio of 1.25 percent. This connotes that the company is making $0.0125 for each dollar of assets. An increasing asset utilization means that Workhorse Group is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Workhorse or Toyota is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Workhorse's Liquidity

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

Correlation Between Workhorse and Toyota Motor

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Workhorse together with similar or unrelated positions with a negative correlation. For example, you can also add Toyota to your portfolio. If Toyota is not perfectly correlated to Workhorse it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Workhorse for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between WKHS and TM for more information.


Are you currently holding both Workhorse and Toyota in your portfolio? Please note if you are using this as a pair-trade strategy between Workhorse and Toyota, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

What is the case for Workhorse Investors

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

Lets now check Workhorse revenue. Based on the latest financial disclosure, Workhorse Group reported 183.11 K of revenue. This is 100.0% lower than that of the Consumer Cyclical sector and 100.0% lower than that of the Auto Manufacturers industry. The revenue for all United States stocks is 100.0% higher than that of Workhorse. As for Toyota we see revenue of 271.18 B, which is 181.68% higher than that of the Auto Manufacturers

271.2 B
Sector7.13 Billion2.56
TM271.18 Billion97.44

Over 3 percent spike for Workhorse. What does it mean for retail investors?

Latest market risk adjusted performance is at 6.78. Workhorse Group is displaying above-average volatility over the selected time horizon. Investors should scrutinize Workhorse Group independently to ensure intended market timing strategies are aligned with expectations about Workhorse volatility.

The Bottom Line

While other entities within the auto manufacturers industry are still a little expensive, even after the recent corrections, Workhorse may offer a potential longer-term growth to retail investors. To conclude, as of the 6th of September 2020, our final 30 days buy-or-sell advice on the enterprise is Strong Sell. We believe Workhorse is currently overvalued with below average probability of financial unrest for the next two years.

About Contributor

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

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