Changchun Faway (China) Buy Hold or Sell Recommendation
| 600742 Stock | 9.75 0.31 3.08% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Changchun Faway Automobile is 'Sell'. Macroaxis provides Changchun Faway buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding 600742 positions.
Check out Changchun Faway 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. In addition, we conduct extensive research on individual companies such as Changchun and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Changchun Faway Automobile. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
Changchun |
Execute Changchun Faway Buy or Sell Advice
The Changchun recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Changchun Faway Automobile. Macroaxis does not own or have any residual interests in Changchun Faway Automobile or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Changchun Faway's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Sell
Market Performance | Solid | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Changchun Faway Trading Alerts and Improvement Suggestions
| Changchun Faway Auto is unlikely to experience financial distress in the next 2 years | |
| About 45.0% of the company shares are owned by insiders or employees | |
| Latest headline from news.google.com: Changchun FAWAY Automobile ComponentsLtds Soft Earnings Dont Show The Whole Picture - Simply Wall St |
Changchun Faway Returns Distribution Density
The distribution of Changchun Faway's historical returns is an attempt to chart the uncertainty of Changchun Faway's future price movements. The chart of the probability distribution of Changchun Faway daily returns describes the distribution of returns around its average expected value. We use Changchun Faway Automobile price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Changchun Faway returns is essential to provide solid investment advice for Changchun Faway.
| Mean Return | 0.44 | Value At Risk | -2.99 | Potential Upside | 3.88 | Standard Deviation | 2.22 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Changchun Faway 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.
Changchun Faway Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Dividends Paid | 324.0M | 108.5M | 204.5M | 206.7M | 189.6M | 117.2M | |
| Capital Expenditures | 727.6M | 670.1M | 653.4M | 921.7M | 763.5M | 801.7M | |
| Net Income | 535.8M | 617.3M | 658.9M | 544.0M | 520.5M | 386.2M | |
| Change To Inventory | (76.6M) | 127.1M | 22.6M | (69.6M) | 86.4M | 90.7M | |
| Investments | (2M) | (227.3M) | (120.5M) | (1.1B) | (254.8M) | (267.5M) | |
| Change In Cash | 545.6M | 2.2B | 1.2B | (167.8M) | 1.6B | 1.7B | |
| Net Borrowings | (207.0M) | 66.5M | (63.5M) | (40M) | (36M) | (34.2M) | |
| Depreciation | 333.3M | 559.7M | 618.1M | 667.4M | 718.3M | 468.2M | |
| Change To Netincome | (326.4M) | (111.1M) | (61.3M) | (452.9M) | (520.8M) | (546.9M) | |
| End Period Cash Flow | 1.7B | 3.9B | 5.2B | 5.0B | 6.6B | 3.7B | |
| Free Cash Flow | 546.2M | 2.5B | 1.6B | (177.5M) | 1.4B | 851.6M | |
| Other Non Cash Items | 20.5M | 27.6M | 27.1M | (48.8M) | (39.5M) | (37.5M) |
Changchun Faway 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 Changchun Faway or Automobile Components 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 Changchun Faway'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 Changchun 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 Jones | 0.45 | |
β | Beta against Dow Jones | -0.16 | |
σ | Overall volatility | 2.35 | |
Ir | Information ratio | 0.15 |
Changchun Faway Volatility Alert
Changchun Faway Automobile currently demonstrates below-average downside deviation. It has Information Ratio of 0.15 and Jensen Alpha of 0.45. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Changchun Faway's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Changchun Faway'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 financial instruments as prices fall.Changchun Faway Fundamentals Vs Peers
Comparing Changchun Faway'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 Changchun Faway's direct or indirect competition across all of the common fundamentals between Changchun Faway and the related equities. This way, we can detect undervalued stocks with similar characteristics as Changchun Faway or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Changchun Faway's fundamental indicators could also be used in its relative valuation, which is a method of valuing Changchun Faway by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Changchun Faway to competition |
| Fundamentals | Changchun Faway | Peer Average |
| Return On Equity | 0.0725 | -0.31 |
| Return On Asset | 0.0108 | -0.14 |
| Profit Margin | 0.02 % | (1.27) % |
| Operating Margin | 0.03 % | (5.51) % |
| Current Valuation | 948.88 M | 16.62 B |
| Shares Outstanding | 743.06 M | 571.82 M |
| Shares Owned By Insiders | 45.25 % | 10.09 % |
| Shares Owned By Institutions | 0.90 % | 39.21 % |
| Price To Book | 0.88 X | 9.51 X |
| Price To Sales | 0.38 X | 11.42 X |
| Revenue | 20.77 B | 9.43 B |
| Gross Profit | 1.98 B | 27.38 B |
| EBITDA | 997.03 M | 3.9 B |
| Net Income | 520.53 M | 570.98 M |
| Total Debt | 95.26 M | 5.32 B |
| Book Value Per Share | 11.37 X | 1.93 K |
| Cash Flow From Operations | 2.12 B | 971.22 M |
| Earnings Per Share | 0.66 X | 3.12 X |
| Target Price | 21.0 | |
| Number Of Employees | 14.7 K | 18.84 K |
| Beta | 0.57 | -0.15 |
| Market Capitalization | 7.44 B | 19.03 B |
| Total Asset | 22.32 B | 29.47 B |
| Retained Earnings | 5.16 B | 9.33 B |
| Working Capital | 2.73 B | 1.48 B |
| Net Asset | 22.32 B | |
| Last Dividend Paid | 0.25 |
Changchun Faway Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Changchun . 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 Distribution | 1.2 M | |||
| Daily Balance Of Power | (0.67) | |||
| Rate Of Daily Change | 0.97 | |||
| Day Median Price | 9.96 | |||
| Day Typical Price | 9.89 | |||
| Price Action Indicator | (0.37) | |||
| Period Momentum Indicator | (0.31) |
About Changchun Faway Buy or Sell Advice
When is the right time to buy or sell Changchun Faway Automobile? Buying financial instruments such as Changchun Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the 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. Most of our advising modules are very easy to use and apply.
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Other Information on Investing in Changchun Stock
Changchun Faway financial ratios help investors to determine whether Changchun Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Changchun with respect to the benefits of owning Changchun Faway security.