Should I continue to trust Hedera Group management in March 2019?
 | By Vlad Skutelnik | Macroaxis Story |
This story will review Hedera Group. I will evaluate why we are still optimistic in anticipation of a recovery. Hedera Group AB chance of financial distress is under 3.00 % . Assuming 30 trading days horizon, Hedera Group is expected to under-perform the market. In addition to that, the company is 3.29 times more volatile than its market benchmark. It trades about -0.01 of its total potential returns per unit of risk. The market is currently generating roughly 0.31 per unit of volatility. Hedera Group AB retains regular Real Value of kr11.214 per share. The prevalent price of the corporation is kr13.5. At this time the corporation appears to be overvalued. Macroaxis calculates value of Hedera Group AB from evaluating the corporation fundamentals such as Return On Asset of 5.42%, Current Valuation of 109.51M and Return On Equity of 22.28% as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage to acquire undervalued assets and to sell overvalued assets since at some point stocks prices and their ongoing real values will come together.
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Reviewed by Raphi Shpitalnik
Hedera Group operates under Industrials sector and is part of Staffing & Outsourcing Services industry. The firm dividends can provide a clue to current valuation of the stock. The entity is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. The company has Profit Margin (PM) of 2.25 % which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is normal as compared to the sector avarege. Similarly, it shows Operating Margin (OM) of 3.31 % which suggests for every 100 dollars of sales it generated a net operating income of 0.03.
Investing in Hedera Group, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Hedera Group along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
How important is Hedera Group's Liquidity
Hedera Group financial leverage refers to using borrowed capital as a funding source to finance Hedera Group publ ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Hedera Group financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Hedera Group's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Hedera Group's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Hedera Group's total debt and its cash.
Hedera Group Correlation with Peers
Investors in Hedera can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Hedera Group publ. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Hedera Group and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Hedera is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Hedera for more details
Detailed Perspective On Hedera Group
The current investor indifference towards the small price fluctuations of Hedera Group may raise some interest from investors. The Stock closed today at a share price of 13.0 on 89.000 in trading volume. The company executives did not add any value to Hedera Group AB investors in January. However, most investors can still diversify their portfolios with Hedera Group to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 0.0. The very small Stock volatility is a good signal to investors with longer term investment horizons. Hedera Group defends 9m current liabilities. Hedera Group is selling for under 13.50. That is 2.88 percent decrease. Today lowest is 13.0. To sum up, we see that Hedera Group Barely shadows market. The firm is overvalued with very low odds of distress within the next 24 months. Our overall buy/sell advice on the firm is Strong Sell.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Hedera Group publ. Please refer to our Terms of Use for any information regarding our disclosure principles.