Varta AG (Germany) Buy Hold or Sell Recommendation

VAR1 Stock  EUR 2.31  0.22  10.53%   
Assuming the 90 days trading horizon and your way above-average risk tolerance, our recommendation regarding Varta AG is 'Strong Sell'. Macroaxis provides Varta AG buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Varta AG positions.
  
Check out Varta AG 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 Varta and provide practical buy, sell, or hold advice based on investors' constraints. Varta AG. 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 Varta AG Buy or Sell Advice

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

Time Horizon

Risk Tolerance

Execute Advice
Sell Varta AGBuy Varta AG
Strong Sell

Market Performance

ModestDetails

Volatility

Abnormally volatileDetails

Hype Condition

StaleDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Hyperactively responds to market trendsDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Varta AG has a Mean Deviation of 7.94, Semi Deviation of 8.5, Standard Deviation of 14.6, Variance of 213.15, Downside Variance of 85.1 and Semi Variance of 72.31
We provide advice to complement the current expert consensus on Varta AG. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time. To make sure Varta AG is not overpriced, please validate all Varta AG fundamentals, including its gross profit, net income, and the relationship between the revenue and ebitda .

Varta AG Trading Alerts and Improvement Suggestions

Varta AG is way too risky over 90 days horizon
Varta AG appears to be risky and price may revert if volatility continues
Varta AG has accumulated 103.28 M in total debt with debt to equity ratio (D/E) of 0.23, which may suggest the company is not taking enough advantage from borrowing. Varta AG has a current ratio of 0.95, 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 Varta AG until it has trouble settling it off, either with new capital or with free cash flow. So, Varta AG'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 Varta AG sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Varta to invest in growth at high rates of return. When we think about Varta AG's use of debt, we should always consider it together with cash and equity.
About 56.0% of Varta AG outstanding shares are owned by insiders

Varta AG current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Varta analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Varta analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price25.75
Target Median Price25.75
Target High Price30.00
Number Of Analyst Opinions2
Target Low Price21.50
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Varta AG Returns Distribution Density

The distribution of Varta AG's historical returns is an attempt to chart the uncertainty of Varta AG's future price movements. The chart of the probability distribution of Varta AG daily returns describes the distribution of returns around its average expected value. We use Varta AG price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Varta AG returns is essential to provide solid investment advice for Varta AG.
Mean Return
0.95
Value At Risk
-13.41
Potential Upside
28.24
Standard Deviation
14.60
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Varta AG 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.

Varta AG 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 Varta AG or Industrials 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 Varta AG'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 Varta 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
0.51
β
Beta against Dow Jones4.36
σ
Overall volatility
14.75
Ir
Information ratio 0.06

Varta AG Volatility Alert

Varta AG is showing large volatility of returns over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Varta AG'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 Varta AG'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.

Varta AG Fundamentals Vs Peers

Comparing Varta AG'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 Varta AG's direct or indirect competition across all of the common fundamentals between Varta AG and the related equities. This way, we can detect undervalued stocks with similar characteristics as Varta AG or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Varta AG's fundamental indicators could also be used in its relative valuation, which is a method of valuing Varta AG by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Varta AG to competition
FundamentalsVarta AGPeer Average
Return On Equity22.43-0.31
Return On Asset9.99-0.14
Profit Margin11.49 %(1.27) %
Operating Margin20.38 %(5.51) %
Current Valuation4.89 B16.62 B
Shares Outstanding40.42 M571.82 M
Shares Owned By Insiders55.88 %10.09 %
Shares Owned By Institutions23.84 %39.21 %
Price To Earning54.64 X28.72 X
Price To Book9.83 X9.51 X
Price To Sales5.89 X11.42 X
Revenue880.45 M9.43 B
Gross Profit540.14 M27.38 B
EBITDA249.84 M3.9 B
Net Income101.13 M570.98 M
Cash And Equivalents48.59 M2.7 B
Cash Per Share1.21 X5.01 X
Total Debt103.28 M5.32 B
Debt To Equity0.23 %48.70 %
Current Ratio0.97 X2.16 X
Book Value Per Share13.06 X1.93 K
Cash Flow From Operations123.12 M971.22 M
Earnings Per Share2.35 X3.12 X
Number Of Employees4.61 K18.84 K
Beta0.96-0.15
Market Capitalization5.19 B19.03 B
Z Score30.08.72
Last Dividend Paid2.48

Varta AG Market Momentum

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

When is the right time to buy or sell Varta AG? Buying financial instruments such as Varta 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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Other Information on Investing in Varta Stock

Varta AG financial ratios help investors to determine whether Varta 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 Varta with respect to the benefits of owning Varta AG security.