Microvast Stock Story

MVST

- USA Stock

USD 2.74 0.29 9.57%

Macroaxis Story

Microvast Hldgs Net Cash Flow Investment Acquisitions and Disposals is comparatively stable at the moment as compared to the past year. Microvast Hldgs reported Net Cash Flow Investment Acquisitions and Disposals of 862,200 in 2021. Effect of Exchange Rate Changes on Cash is likely to gain to about 3.1 M in 2022, whereas Free Cash Flow is likely to drop (136.4 M) in 2022. The stock is currently undergoing a very aggressive trading activities. As some conservatives are trying to avoid industrials space, we'll review Microvast Hldgs a little further and explain its current market possibilities. We will analyze why Microvast Hldgs investors may still consider a stake in the business. Microvast Hldgs probability of distress is under 36 percent. Will Microvast Hldgs private investors continue to buy in June?

Published over three weeks ago

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Are Microvast Hldgs (NASDAQ:MVST) uncertain basic indicators contributing to the newest drop?

Microvast Hldgs has Sharpe Ratio of -0.0585, which conveys that the firm had -0.0585% of return per unit of risk over the last 3 months. Macroaxis standpoint towards estimating the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Microvast Hldgs exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to verify Microvast Hldgs risk adjusted performance of (0.046891), and Mean Deviation of 5.08 to check out the risk estimate we provide.

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Microvast Hldgs income statement, its balance sheet, and the statement of cash flows. Potential Microvast Hldgs investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Microvast Hldgs investors may use each financial statement separately, they are all related. The changes in Microvast Hldgs's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Microvast Hldgs's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

The goal of Microvast Hldgs fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Microvast Hldgs performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Microvast Hldgs shares is the value that is considered the true value of the share. If the intrinsic value of Microvast is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Microvast Hldgs.

Please read more on our fundamental analysis page.

Are Microvast Hldgs Earnings Expected to grow?

The future earnings power of Microvast Hldgs involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Microvast Hldgs factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Microvast Hldgs stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Microvast expected earnings.

How does Microvast utilize its cash?

To perform a cash flow analysis of Microvast Hldgs, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Microvast Hldgs is receiving and how much cash it distributes out in a given period. The Microvast Hldgs cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Microvast Hldgs Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Microvast Hldgs reported Net Cash Flow from Operations of (45.04 Million) in 2021

Microvast Hldgs Gross Profit

Microvast Hldgs Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Microvast Hldgs 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 Microvast Hldgs Gross Profit growth over the last 10 years.

Please check Gross Profit in more details.

Another Deeper Perspective

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Microvast Hldgs is not uncomon. There are few distinct groups of Microvast Hldgs stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Microvast is distributed among investors.

Ownership Allocation

Microvast Hldgs holds a total of 300.52 Million outstanding shares. Microvast Hldgs holds significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Remember, it does not matter who owns the company or if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.

Retail Investors

20.11%

Insiders

45.26%

Institutions

34.63%

	Retail Investors	20.11
	Insiders	45.26
	Institutions	34.63

Asset Utilization

One of the ways to look at asset utilization of Microvast is to check how much profit was generated for every dollar of assets it reports. Microvast Hldgs secures a negative usage of assets of -17.88 %, losing $0.18 for each dollar of assets held by the firm. Inadequate asset utilization conveys that the company is being less effective with each dollar of assets it secures. Strictly speaking, asset utilization of Microvast Hldgs shows how discouraging it operates for each dollar spent on its assets.

Current Assets

762.4 M

Assets Non Current

255.1 M

Current Assets	762.39 Million	73.83
Assets Non Current	255.13 Million	24.71
Goodwill	15.13 Million	1.47

Will Microvast Hldgs growth be sustainable after the gain?

Newest Risk Adjusted Performance is up to -0.05. Price may drop again. Microvast Hldgs is displaying above-average volatility over the selected time horizon. Investors should scrutinize Microvast Hldgs independently to ensure intended market timing strategies are aligned with expectations about Microvast Hldgs volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Microvast Hldgs' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Microvast Hldgs' 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.

Microvast Hldgs Implied Volatility

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

Our Final Take On Microvast Hldgs

Whereas other entities in the electrical equipment & parts industry are either recovering or due for a correction, Microvast may not be as strong as the others in terms of longer-term growth potentials. On the whole, as of the 28th of May 2022, our ongoing 90 days buy-hold-sell recommendation on the firm is Cautious Hold. We believe Microvast Hldgs is undervalued with below average odds of financial distress for the next two years.

Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test 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 Microvast Hldgs. Please refer to our Terms of Use for any information regarding our disclosure principles.

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