Farfetch Stock Buy Hold or Sell Recommendation

FTCH -  USA Stock  

USD 7.86  0.83  9.55%

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Farfetch Ltd Cl is 'Cautious Hold'. Macroaxis provides Farfetch buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Farfetch positions. The advice algorithm takes into account all of Farfetch's available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Farfetch's buy-and-hold perspective. Please check Farfetch Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Farfetch and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Farfetch Ltd Cl.

Execute Farfetch Buy or Sell Advice

The Farfetch recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Farfetch Ltd Cl. Macroaxis does not own or have any residual interests in Farfetch Ltd Cl or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Farfetch's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell FarfetchBuy Farfetch
Cautious Hold

Volatility

Slightly riskyDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

AverageDetails

Economic Sensitivity

Hyperactively responds to market trendsDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Farfetch Ltd Cl has a Mean Deviation of 6.22, Standard Deviation of 8.65 and Variance of 74.9
We provide trade advice to complement the prevailing expert consensus on Farfetch Ltd Cl. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Farfetch is not overpriced, please confirm all Farfetch Ltd Cl fundamentals, including its debt to equity, beta, and the relationship between the net income and short ratio . Given that Farfetch Ltd Cl has a number of shares shorted of 21.72 M, we urge you to verify Farfetch Ltd Cl market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Farfetch Trading Alerts and Improvement Suggestions

Farfetch Ltd Cl generated a negative expected return over the last 90 days
Farfetch Ltd Cl has high historical volatility and very poor performance
Farfetch Ltd Cl has high likelihood to experience some financial distress in the next 2 years
Farfetch Ltd Cl currently holds about 1.46 B in cash with (282.15 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.84.
Over 92.0% of the company shares are owned by institutional investors

Farfetch current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Farfetch analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Farfetch analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price31.47
Target Median Price28.00
Target High Price56.00
Recommendation Mean2.00
Number Of Analyst Opinions18
Target Low Price16.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Farfetch Returns Distribution Density

The distribution of Farfetch's historical returns is an attempt to chart the future uncertainty of Farfetch's future price movements. The chart of the probability distribution of Farfetch stock daily returns describes the distribution of returns around its average expected value. We use Farfetch Ltd Cl price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Farfetch returns is essential to provide solid investment advice for Farfetch stock.
Mean Return-0.98Value At Risk-9.79
Potential Upside10.05Standard Deviation8.65
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Farfetch historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Farfetch Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Farfetch is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Farfetch Ltd Cl backward and forwards among themselves. Farfetch's institutional investor refers to the entity that pools money to purchase Farfetch's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Morgan StanleyCommon Shares38.6 M583.7 M
Baillie Gifford CoCommon Shares30.6 M462.5 M
Lone Pine Capital LlcCommon Shares17.2 M260.1 M
Invesco LtdCommon Shares16.4 M248.4 M
Price T Rowe Associates IncCommon Shares14.9 M225.3 M
Dragoneer Investment Group LlcCommon Shares10.6 M160.5 M
Goldman Sachs Group IncCommon Shares9.2 M138.9 M
Linden Advisors LpDebt106 M138.1 M
Note, although Farfetch's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Farfetch Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(31.61 M)(72.11 M)(112.22 M)(120.94 M)(196.56 M)(201.73 M)
Depreciation Amortization and Accretion10.98 M23.54 M113.59 M217.22 M251.2 M271.03 M
Net Cash Flow or Change in Cash and Cash Equivalents211.96 M679.78 M(725.39 M)1.24 B(207.67 M)(213.13 M)
Issuance Purchase of Equity Shares322.1 M859.53 M8.65 M112.9 M30.71 M31.52 M
Issuance Repayment of Debt Securities19.33 M(21.95 M)(23.9 M)1.17 B(59.04 M)(60.6 M)
Net Cash Flow from Financing300.14 M859.53 M(15.25 M)1.26 B405.14 M465.42 M
Net Cash Flow from Investing(28.86 M)(63.54 M)(583.5 M)(132.64 M)(330.66 M)(339.36 M)
Net Cash Flow from Operations(59.32 M)(116.2 M)(126.64 M)116.31 M(282.15 M)(289.58 M)
Effect of Exchange Rate Changes on Cash22.01 M(19 M)3.04 M6.28 M(2.62 M)(2.83 M)

Farfetch Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Farfetch or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Farfetch stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Farfetch stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.31
β
Beta against DOW4.02
σ
Overall volatility
8.70
Ir
Information ratio -0.09

Farfetch Volatility Alert

Farfetch Ltd Cl is displaying above-average volatility over the selected time horizon. Investors should scrutinize Farfetch Ltd Cl independently to ensure intended market timing strategies are aligned with expectations about Farfetch volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Farfetch'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 Farfetch'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.

Farfetch Implied Volatility

Farfetch's implied volatility exposes the market's sentiment of Farfetch Ltd Cl stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Farfetch'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 Farfetch stock will not fluctuate a lot when Farfetch's options are near their expiration.

Farfetch Fundamentals Vs Peers

Comparing Farfetch's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Farfetch's direct or indirect competition across all of the common fundamentals between Farfetch and the related equities. This way, we can detect undervalued stocks with similar characteristics as Farfetch or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Farfetch's fundamental indicators could also be used in its relative valuation, which is a method of valuing Farfetch by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Farfetch to competition
FundamentalsFarfetchPeer Average
Return On Equity(526.85) %(0.31) %
Return On Asset(7.78) %(0.14) %
Profit Margin64.99 %(1.27) %
Operating Margin(20.46) %(5.51) %
Current Valuation3.72 B16.62 B
Shares Outstanding328.25 M571.82 M
Shares Owned by Insiders4.69 %10.09 %
Shares Owned by Institutions91.75 %39.21 %
Number of Shares Shorted21.72 M4.71 M
Price to Earning(9.23) X28.72 X
Price to Book88.80 X9.51 X
Price to Sales1.43 X11.42 X
Revenue2.26 B9.43 B
Gross Profit1.02 B27.38 B
EBITDA(313.08 M)3.9 B
Net Income1.47 B570.98 M
Cash and Equivalents1.46 B2.7 B
Cash per Share3.84 X5.01 X
Total Debt730.31 M5.32 B
Debt to Equity2.70 %48.70 %
Current Ratio2.33 X2.16 X
Book Value Per Share(0.79) X1.93 K
Cash Flow from Operations(282.15 M)971.22 M
Short Ratio2.81 X4.00 X
Earnings Per Share(7.48) X3.12 X
Price to Earnings To Growth0.08 X4.89 X
Number of Employees6.46 K18.84 K
Beta3.16-0.15
Market Capitalization3.22 B19.03 B
Total Asset228 K29.47 B
Retained Earnings(847.88 M)9.33 B
Working Capital(829 K)1.48 B
Current Asset6 K9.34 B

Farfetch Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Farfetch . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution2.9 M
Daily Balance Of Power(0.53)
Rate Of Daily Change0.9
Day Median Price8.19
Day Typical Price8.08
Price Action Indicator(0.74)

About Farfetch Buy or Sell Advice

When is the right time to buy or sell Farfetch Ltd Cl? Buying financial instruments such as Farfetch Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Farfetch investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Current Assets645.33 M1.96 B2.11 B1.74 B
Total Assets2.23 B3.59 B3.83 B3.15 B

Use Investing Ideas to Build Portfolios

In addition to having Farfetch in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Education Thematic Idea Now

Education
Education Theme
Companies involved in apprenticeship, education, tutoring, schooling, online universities, and other learning services. The Education theme has 30 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Education Theme or any other thematic opportunities.
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Please check Farfetch Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Farfetch Ltd Cl information on this page should be used as a complementary analysis to other Farfetch's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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When running Farfetch Ltd Cl price analysis, check to measure Farfetch's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Farfetch is operating at the current time. Most of Farfetch's value examination focuses on studying past and present price action to predict the probability of Farfetch's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Farfetch's price. Additionally, you may evaluate how the addition of Farfetch to your portfolios can decrease your overall portfolio volatility.
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Is Farfetch's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Farfetch. If investors know Farfetch will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Farfetch listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Farfetch Ltd Cl is measured differently than its book value, which is the value of Farfetch that is recorded on the company's balance sheet. Investors also form their own opinion of Farfetch's value that differs from its market value or its book value, called intrinsic value, which is Farfetch's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Farfetch's market value can be influenced by many factors that don't directly affect Farfetch's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Farfetch's value and its price as these two are different measures arrived at by different means. Investors typically determine Farfetch value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Farfetch's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.