Sovereign Metals (UK) Buy Hold or Sell Recommendation

SVML Stock   42.00  3.00  7.69%   
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Sovereign Metals is 'Strong Sell'. A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Sovereign Metals given historical horizon and risk tolerance towards Sovereign Metals. When Macroaxis issues a 'buy' or 'sell' recommendation for Sovereign Metals, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Sovereign Metals 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 Sovereign and provide practical buy, sell, or hold advice based on investors' constraints. Sovereign Metals. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Execute Sovereign Metals Buy or Sell Advice

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

Time Horizon

Risk Tolerance

Execute Advice
Sell Sovereign MetalsBuy Sovereign Metals
Strong Sell

Market Performance

GoodDetails

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

AverageDetails

Economic Sensitivity

Moves slightly opposite to the marketDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Sovereign Metals has a Mean Deviation of 1.84, Semi Deviation of 1.5, Standard Deviation of 2.9, Variance of 8.41, Downside Variance of 8.52 and Semi Variance of 2.26
Sovereign Metals recommendation module can be used to check and cross-verify current trade recommendation provided by analysts inspecting the firm's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Sovereign Metals is not overpriced, please validate all Sovereign Metals fundamentals, including its net income, book value per share, earnings per share, as well as the relationship between the total debt and cash flow from operations .

Sovereign Metals Trading Alerts and Improvement Suggestions

Sovereign Metals has high likelihood to experience some financial distress in the next 2 years
The company reported the revenue of 366.38 K. Net Loss for the year was (18.6 M) with loss before overhead, payroll, taxes, and interest of (32.88 K).
Sovereign Metals generates negative cash flow from operations
About 35.0% of the company outstanding shares are owned by corporate insiders
Latest headline from news.google.com: Promising results for Sovereigns graphite supply as China alternative - Marketscreener.com

Sovereign Metals Returns Distribution Density

The distribution of Sovereign Metals' historical returns is an attempt to chart the uncertainty of Sovereign Metals' future price movements. The chart of the probability distribution of Sovereign Metals daily returns describes the distribution of returns around its average expected value. We use Sovereign Metals price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Sovereign Metals returns is essential to provide solid investment advice for Sovereign Metals.
Mean Return
0.41
Value At Risk
-2.78
Potential Upside
7.46
Standard Deviation
2.90
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Sovereign Metals 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.

Sovereign Metals Cash Flow Accounts

201920202021202220232024 (projected)
Depreciation53.4K62.7K41.1K104.4K120.0K126.0K
Other Non Cash Items6.4M3.1M5.1M13.6M15.7M16.5M
Net Income(6.4M)(3.1M)(5.1M)(13.8M)(18.6M)(17.7M)
Investments(67.3K)(260.3K)(313.4K)59.7K(801.9K)(761.8K)
Change To Netincome(117.5K)986.2K2.9M(7.8M)(7.0M)(6.6M)

Sovereign Metals 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 Sovereign Metals or Metals & Mining 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 Sovereign Metals' 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 Sovereign 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
0.49
β
Beta against Dow Jones-0.76
σ
Overall volatility
2.91
Ir
Information ratio 0.1

Sovereign Metals Volatility Alert

Sovereign Metals currently demonstrates below-average downside deviation. It has Information Ratio of 0.1 and Jensen Alpha of 0.49. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sovereign Metals' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sovereign Metals' 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.

Sovereign Metals Fundamentals Vs Peers

Comparing Sovereign Metals' 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 Sovereign Metals' direct or indirect competition across all of the common fundamentals between Sovereign Metals and the related equities. This way, we can detect undervalued stocks with similar characteristics as Sovereign Metals or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Sovereign Metals' fundamental indicators could also be used in its relative valuation, which is a method of valuing Sovereign Metals by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Sovereign Metals to competition
FundamentalsSovereign MetalsPeer Average
Return On Equity-0.84-0.31
Return On Asset-0.51-0.14
Current Valuation221.47 M16.62 B
Shares Outstanding599.88 M571.82 M
Shares Owned By Insiders35.23 %10.09 %
Shares Owned By Institutions8.43 %39.21 %
Price To Book14.25 X9.51 X
Price To Sales384.59 X11.42 X
Revenue366.38 K9.43 B
Gross Profit(32.88 K)27.38 B
EBITDA(20.41 M)3.9 B
Net Income(18.6 M)570.98 M
Total Debt121.72 K5.32 B
Book Value Per Share0.06 X1.93 K
Cash Flow From Operations(13.65 M)971.22 M
Earnings Per Share(0.02) X3.12 X
Beta0.93-0.15
Market Capitalization251.95 M19.03 B
Total Asset38.68 M29.47 B
Retained Earnings(80.12 M)9.33 B
Working Capital28.21 M1.48 B
Net Asset38.68 M

Sovereign Metals Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Sovereign . 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.

About Sovereign Metals Buy or Sell Advice

When is the right time to buy or sell Sovereign Metals? Buying financial instruments such as Sovereign 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 Sovereign Stock Analysis

When running Sovereign Metals' price analysis, check to measure Sovereign Metals' 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 Sovereign Metals is operating at the current time. Most of Sovereign Metals' value examination focuses on studying past and present price action to predict the probability of Sovereign Metals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sovereign Metals' price. Additionally, you may evaluate how the addition of Sovereign Metals to your portfolios can decrease your overall portfolio volatility.