UBS Group Stock Story

UBS
 Stock
  

USD 16.95  0.17  1.01%   

Today we may see the proof that Wells Fargo would recover slower from the current slip as its shares fell 6.11% to UBS Group's 4.85%. As many rational traders are trying to avoid financial services space, it makes sense to sum up UBS Group Ag a little further and understand how it stands against Wells Fargo and other similar entities. We are going to discuss some of the competitive aspects of both UBS Group and Wells.
Published over three months ago
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Will Wells Fargo retail investors switch to UBS Group (NYSE:UBS)?

By analyzing existing fundamental drivers between UBS Group and Wells, 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 Wells with a short position in UBS Group. 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. UBS Group has an asset utilization ratio of 3.7 percent. This connotes that the company is making $0.037 for each dollar of assets. An increasing asset utilization means that UBS Group Ag is more efficient with each dollar of assets it utilizes for everyday operations.

How important is UBS Group's Liquidity

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

How does UBS Group utilize its cash?

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

Breaking down UBS Group Further

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

Now, let's check UBS Group revenue. Based on the latest financial disclosure, UBS Group Ag reported 34.92 B of revenue. This is 211.51% higher than that of the Financial Services sector and significantly higher than that of the Banks—Diversified industry. The revenue for all United States stocks is significantly lower than that of UBS Group Ag. As for Wells Fargo we see revenue of 78.19 B, which is much higher than that of the Banks—Diversified

UBS Group34.92 Billion
Sector0.0
Wells78.19 Billion
34.9 B
UBS Group
Sector
78.2 B
Wells

Our take on UBS Group to turn the corner

Latest Total Risk Alpha is up to -0.01. Price may fall again.
As of the 7th of March, UBS Group has the risk adjusted performance of (0.038222), and Market Risk Adjusted Performance of (0.08). In connection with fundamental indicators, the technical analysis model makes it possible for you to check practical technical drivers of UBS Group Ag, as well as the relationship between them. In other words, you can use this information to find out if the entity will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We have analyzed nineteen technical drivers for UBS Group Ag, which can be compared to its competition. Please validate UBS Group Ag jensen alpha and downside variance to decide if UBS Group is priced adequately, providing market reflects its prevalent price of 15.12 per share. Given that UBS Group Ag has jensen alpha of (0.06), we advise you to double-check UBS Group Ag's current market performance to make sure the company can sustain itself at some point in the future.

Our Conclusion on UBS Group

While some other companies in the banks—diversified industry are either recovering or due for a correction, UBS Group may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of UBS Group as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to UBS Group.

Editorial Staff

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

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