Grupo TMM (Mexico) Buy Hold or Sell Recommendation

TMMA Stock  MXN 5.19  0.19  3.80%   
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Grupo TMM SAB is 'Strong Sell'. A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Grupo TMM SAB given historical horizon and risk tolerance towards Grupo TMM. When Macroaxis issues a 'buy' or 'sell' recommendation for Grupo TMM SAB, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Grupo TMM 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 Grupo and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Grupo TMM SAB. 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 Grupo TMM Buy or Sell Advice

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

Time Horizon

Risk Tolerance

Execute Advice
Sell Grupo TMMBuy Grupo TMM
Strong Sell

Market Performance

GoodDetails

Volatility

Relatively riskyDetails

Hype Condition

StaleDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Moves slightly opposite to the marketDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Grupo TMM SAB has a Mean Deviation of 2.06, Semi Deviation of 1.59, Standard Deviation of 3.63, Variance of 13.18, Downside Variance of 6.68 and Semi Variance of 2.53
We provide advice to complement the regular expert consensus on Grupo TMM. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Grupo TMM SAB is not overpriced, please check out all Grupo TMM fundamentals, including its price to sales, gross profit, net income, as well as the relationship between the revenue and ebitda .

Grupo TMM Trading Alerts and Improvement Suggestions

Grupo TMM SAB appears to be risky and price may revert if volatility continues
Grupo TMM SAB has accumulated 65.6 M in total debt with debt to equity ratio (D/E) of 0.25, which may suggest the company is not taking enough advantage from borrowing. Grupo TMM SAB has a current ratio of 0.77, 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 Grupo TMM until it has trouble settling it off, either with new capital or with free cash flow. So, Grupo TMM'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 Grupo TMM SAB sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Grupo to invest in growth at high rates of return. When we think about Grupo TMM's use of debt, we should always consider it together with cash and equity.
The entity reported the revenue of 1.36 B. Net Loss for the year was (242.57 M) with profit before overhead, payroll, taxes, and interest of 93.32 M.
Grupo TMM SAB has accumulated about 115.46 M in cash with (78.12 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 5.65, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Roughly 34.0% of Grupo TMM outstanding shares are owned by corporate insiders

Grupo TMM Returns Distribution Density

The distribution of Grupo TMM's historical returns is an attempt to chart the uncertainty of Grupo TMM's future price movements. The chart of the probability distribution of Grupo TMM daily returns describes the distribution of returns around its average expected value. We use Grupo TMM SAB price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Grupo TMM returns is essential to provide solid investment advice for Grupo TMM.
Mean Return
0.53
Value At Risk
-4.03
Potential Upside
7.05
Standard Deviation
3.63
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Grupo TMM 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.

Grupo TMM 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 Grupo TMM or Oil, Gas & Consumable Fuels 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 Grupo TMM'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 Grupo 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
0.59
β
Beta against Dow Jones-0.79
σ
Overall volatility
3.57
Ir
Information ratio 0.12

Grupo TMM Volatility Alert

Grupo TMM SAB currently demonstrates below-average downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.59. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Grupo TMM'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 Grupo TMM'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.

Grupo TMM Fundamentals Vs Peers

Comparing Grupo TMM'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 Grupo TMM's direct or indirect competition across all of the common fundamentals between Grupo TMM and the related equities. This way, we can detect undervalued stocks with similar characteristics as Grupo TMM or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Grupo TMM's fundamental indicators could also be used in its relative valuation, which is a method of valuing Grupo TMM by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Grupo TMM to competition
FundamentalsGrupo TMMPeer Average
Return On Equity-0.0429-0.31
Return On Asset0.0106-0.14
Profit Margin(0.05) %(1.27) %
Operating Margin0.04 %(5.51) %
Current Valuation732.03 M16.62 B
Shares Outstanding102.18 M571.82 M
Shares Owned By Insiders34.43 %10.09 %
Shares Owned By Institutions10.42 %39.21 %
Price To Earning7.86 X28.72 X
Price To Book0.14 X9.51 X
Price To Sales0.14 X11.42 X
Revenue1.36 B9.43 B
Gross Profit93.32 M27.38 B
EBITDA(75.4 M)3.9 B
Net Income(242.57 M)570.98 M
Cash And Equivalents115.46 M2.7 B
Cash Per Share5.65 X5.01 X
Total Debt65.6 M5.32 B
Debt To Equity0.25 %48.70 %
Current Ratio0.79 X2.16 X
Book Value Per Share85.40 X1.93 K
Cash Flow From Operations(78.12 M)971.22 M
Earnings Per Share(7.03) X3.12 X
Target Price8.78
Number Of Employees89218.84 K
Beta0.29-0.15
Market Capitalization236.04 M19.03 B
Total Asset3.8 B29.47 B
Working Capital1.41 B1.48 B
Current Asset2.79 B9.34 B
Current Liabilities1.39 B7.9 B
Z Score1.88.72
Net Asset3.8 B

Grupo TMM Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Grupo . 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 Grupo TMM Buy or Sell Advice

When is the right time to buy or sell Grupo TMM SAB? Buying financial instruments such as Grupo 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 Grupo Stock Analysis

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