Braskem SA (Brazil) Buy Hold or Sell Recommendation
| BRKM5 Preferred Stock | BRL 14.35 0.22 1.51% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Braskem SA is 'Strong Sell'. A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Braskem SA given historical horizon and risk tolerance towards Braskem SA. When Macroaxis issues a 'buy' or 'sell' recommendation for Braskem SA, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out Braskem SA 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, we conduct extensive research on individual companies such as Braskem and provide practical buy, sell, or hold advice based on investors' constraints. Braskem SA. 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.
Braskem |
Execute Braskem SA Buy or Sell Advice
The Braskem recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Braskem SA. Macroaxis does not own or have any residual interests in Braskem SA or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Braskem SA's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost neglects market trends | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Braskem SA Trading Alerts and Improvement Suggestions
| Braskem SA generated a negative expected return over the last 90 days | |
| Braskem SA has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
| Braskem SA has accumulated 48.4 B in total debt with debt to equity ratio (D/E) of 555.0, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Braskem SA has a current ratio of 0.91, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Braskem SA until it has trouble settling it off, either with new capital or with free cash flow. So, Braskem SA's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Braskem SA sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Braskem to invest in growth at high rates of return. When we think about Braskem SA's use of debt, we should always consider it together with cash and equity. | |
| About 45.0% of Braskem SA shares are held by company insiders |
Braskem SA Returns Distribution Density
The distribution of Braskem SA's historical returns is an attempt to chart the uncertainty of Braskem SA's future price movements. The chart of the probability distribution of Braskem SA daily returns describes the distribution of returns around its average expected value. We use Braskem SA price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Braskem SA returns is essential to provide solid investment advice for Braskem SA.
| Mean Return | -0.22 | Value At Risk | -3.66 | Potential Upside | 3.52 | Standard Deviation | 2.34 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Braskem SA 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.
Braskem SA 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 Braskem SA or Chemicals 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 Braskem SA's price will be affected by overall preferred 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 Braskem preferred 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 | -0.2 | |
β | Beta against Dow Jones | -0.41 | |
σ | Overall volatility | 2.33 | |
Ir | Information ratio | -0.14 |
Braskem SA Volatility Alert
Braskem SA exhibits very low volatility with skewness of 0.61 and kurtosis of 1.35. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Braskem SA's preferred stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Braskem SA's preferred 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.Braskem SA Fundamentals Vs Peers
Comparing Braskem SA'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 Braskem SA's direct or indirect competition across all of the common fundamentals between Braskem SA and the related equities. This way, we can detect undervalued stocks with similar characteristics as Braskem SA or determine the preferred stocks which would be an excellent addition to an existing portfolio. Peer analysis of Braskem SA's fundamental indicators could also be used in its relative valuation, which is a method of valuing Braskem SA by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Braskem SA to competition |
| Fundamentals | Braskem SA | Peer Average |
| Return On Equity | 0.17 | -0.31 |
| Return On Asset | 0.0836 | -0.14 |
| Profit Margin | 0.02 % | (1.27) % |
| Operating Margin | 0.12 % | (5.51) % |
| Current Valuation | 61.63 B | 16.62 B |
| Shares Outstanding | 344.4 M | 571.82 M |
| Shares Owned By Insiders | 44.90 % | 10.09 % |
| Shares Owned By Institutions | 17.72 % | 39.21 % |
| Price To Earning | 9.56 X | 28.72 X |
| Price To Book | 2.31 X | 9.51 X |
| Price To Sales | 0.18 X | 11.42 X |
| Revenue | 105.63 B | 9.43 B |
| Gross Profit | 32.03 B | 27.38 B |
| EBITDA | 25.53 B | 3.9 B |
| Net Income | 13.98 B | 570.98 M |
| Cash And Equivalents | 3.63 B | 2.7 B |
| Cash Per Share | 9.85 X | 5.01 X |
| Total Debt | 48.4 B | 5.32 B |
| Debt To Equity | 555.00 % | 48.70 % |
| Current Ratio | 0.93 X | 2.16 X |
| Book Value Per Share | 10.91 X | 1.93 K |
| Cash Flow From Operations | 14.79 B | 971.22 M |
| Earnings Per Share | 2.36 X | 3.12 X |
| Price To Earnings To Growth | (8.13) X | 4.89 X |
| Target Price | 41.7 | |
| Number Of Employees | 8.31 K | 18.84 K |
| Beta | 0.73 | -0.15 |
| Market Capitalization | 16.73 B | 19.03 B |
| Total Asset | 92.56 B | 29.47 B |
| Retained Earnings | 3.84 B | 9.33 B |
| Working Capital | 2.93 B | 1.48 B |
| Current Asset | 15.44 B | 9.34 B |
| Current Liabilities | 12.51 B | 7.9 B |
Braskem SA Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Braskem . 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 | 114074.0 | |||
| Daily Balance Of Power | (0.48) | |||
| Rate Of Daily Change | 0.98 | |||
| Day Median Price | 14.53 | |||
| Day Typical Price | 14.47 | |||
| Price Action Indicator | (0.29) | |||
| Period Momentum Indicator | (0.22) | |||
| Relative Strength Index | 30.23 |
About Braskem SA Buy or Sell Advice
When is the right time to buy or sell Braskem SA? Buying financial instruments such as Braskem Preferred 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.
Please read more on our stock advisor page.
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Additional Tools for Braskem Preferred Stock Analysis
When running Braskem SA's price analysis, check to measure Braskem SA'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 Braskem SA is operating at the current time. Most of Braskem SA's value examination focuses on studying past and present price action to predict the probability of Braskem SA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Braskem SA's price. Additionally, you may evaluate how the addition of Braskem SA to your portfolios can decrease your overall portfolio volatility.