Micro Stock Buy Hold or Sell Recommendation

MFGP
 Stock
  

USD 3.17  0.02  0.63%   

Given the investment horizon of 90 days and your complete indifference towards market risk, our recommendation regarding Micro Focus Intl is 'Strong Buy'. Macroaxis provides Micro Focus buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding MFGP positions. The advice algorithm takes into account all of Micro Focus' available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Micro Focus' buy-and-hold perspective. Additionally, see Micro Focus 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 Micro and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Micro Focus Intl.

Execute Micro Focus Buy or Sell Advice

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

Time Horizon

Risk Tolerance

Execute Advice
Sell Micro FocusBuy Micro Focus
Strong Buy

Volatility

RiskyDetails

Hype Condition

Under hypedDetails

Current Valuation

OvervaluedDetails

Odds of Distress

AverageDetails

Economic Sensitivity

Responds to the marketDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Micro Focus Intl has a Risk Adjusted Performance of (0.27), Jensen Alpha of (0.46), Total Risk Alpha of (0.29) and Treynor Ratio of (0.46)
We provide investment recommendation to complement the last-minute expert consensus on Micro Focus Intl. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time. To make sure Micro Focus Intl is not overpriced, please verify all Micro Focus Intl fundamentals, including its cash per share, market capitalization, and the relationship between the revenue and cash flow from operations . Given that Micro Focus Intl has a number of shares shorted of 951.41 K, we recommend you to check Micro Focus market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Micro Focus Trading Alerts and Improvement Suggestions

Micro Focus Intl generated a negative expected return over the last 90 days
Micro Focus Intl has high historical volatility and very poor performance
Micro Focus Intl has high likelihood to experience some financial distress in the next 2 years
The company reported the previous year's revenue of 2.9 B. Net Loss for the year was (435.1 M) with profit before overhead, payroll, taxes, and interest of 2.13 B.
Micro Focus Intl has a poor financial position based on the latest SEC disclosures
Latest headline from investorplace.com: 6 Oversold Tech Stocks That Are Terrific Bargains Right Now - InvestorPlace

Micro Focus current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Micro 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. Micro 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 Price7.20
Target Median Price7.20
Target High Price7.40
Recommendation Mean3.00
Number Of Analyst Opinions2
Target Low Price7.00
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.

Micro Focus Returns Distribution Density

The distribution of Micro Focus' historical returns is an attempt to chart the future uncertainty of Micro Focus' future price movements. The chart of the probability distribution of Micro Focus stock daily returns describes the distribution of returns around its average expected value. We use Micro Focus Intl price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Micro Focus returns is essential to provide solid investment advice for Micro Focus stock.
Mean Return-0.71Value At Risk-6.43
Potential Upside4.38Standard Deviation3.61
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Micro Focus 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.

Micro Focus 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 Micro Focus or Technology 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 Micro Focus 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 Micro 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
-0.46
β
Beta against DOW1.56
σ
Overall volatility
3.73
Ir
Information ratio -0.15

Micro Focus Volatility Alert

Micro Focus Intl exhibits very low volatility with skewness of -1.16 and kurtosis of 3.69. However, we advise investors to further study Micro Focus Intl 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 Micro Focus' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Micro Focus' 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.

Micro Focus Implied Volatility

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

Micro Focus Fundamentals Vs Peers

Comparing Micro Focus' 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 Micro Focus' direct or indirect competition across all of the common fundamentals between Micro Focus and the related equities. This way, we can detect undervalued stocks with similar characteristics as Micro Focus or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Micro Focus' fundamental indicators could also be used in its relative valuation, which is a method of valuing Micro Focus by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Micro Focus to competition
FundamentalsMicro FocusPeer Average
Return On Equity(14.42) %(0.31) %
Return On Asset(0.12) %(0.14) %
Profit Margin(14.63) %(1.27) %
Operating Margin(0.68) %(5.51) %
Current Valuation5.76 B16.62 B
Shares Outstanding335.68 M571.82 M
Shares Owned by Insiders0.01 %10.09 %
Shares Owned by Institutions14.74 %39.21 %
Number of Shares Shorted951.41 K4.71 M
Price to Earning1.45 X28.72 X
Price to Book0.37 X9.51 X
Price to Sales0.39 X11.42 X
Revenue2.9 B9.43 B
Gross Profit2.13 B27.38 B
EBITDA656.1 M3.9 B
Net Income(435.1 M)570.98 M
Cash and Equivalents558.4 M2.7 B
Cash per Share1.68 X5.01 X
Total Debt4.78 B5.32 B
Debt to Equity1.69 %48.70 %
Current Ratio1.02 X2.16 X
Book Value Per Share9.10 X1.93 K
Cash Flow from Operations200.6 M971.22 M
Short Ratio2.50 X4.00 X
Earnings Per Share(6.40) X3.12 X
Number of Employees11.36 K18.84 K
Beta2.42-0.15
Market Capitalization1.14 B19.03 B
Total Asset16.29 B29.47 B
Retained Earnings2.27 B9.33 B
Working Capital594.28 M1.48 B
Current Asset2.97 B9.34 B
Current Liabilities2.38 B7.9 B

About Micro Focus Buy or Sell Advice

When is the right time to buy or sell Micro Focus Intl? Buying financial instruments such as Micro 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 Micro Focus 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.
 2021 2022 (projected)
Receivables797.67 M860.64 M
Inventories115 K118.03 K

Use Investing Ideas to Build Portfolios

In addition to having Micro Focus 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.

Did You Try This Idea?

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Air Theme
Companies specializing in air services and air delivery. The Air 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 Air Theme or any other thematic opportunities.
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Additionally, see Micro Focus 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 Micro Focus Intl information on this page should be used as a complementary analysis to other Micro Focus' 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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Is Micro Focus' 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 Micro Focus. If investors know Micro 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 Micro Focus listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
1.45
Market Capitalization
1.1 B
Quarterly Revenue Growth YOY
-0.11
Return On Assets
-9.0E-4
Return On Equity
-0.0855
The market value of Micro Focus Intl is measured differently than its book value, which is the value of Micro that is recorded on the company's balance sheet. Investors also form their own opinion of Micro Focus' value that differs from its market value or its book value, called intrinsic value, which is Micro Focus' 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 Micro Focus' market value can be influenced by many factors that don't directly affect Micro Focus' 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 Micro Focus' value and its price as these two are different measures arrived at by different means. Investors typically determine Micro Focus value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Micro Focus' 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.