When it comes to finding opportunities in the stock market, understanding a company's fundamentals is key. Huize Holding, listed on NASDAQ under the ticker HUIZ, operates in the insurance sector, specifically focusing on property and casualty insurance. With a market capitalization of $26.8 million, Huize is a relatively small player, yet it shows potential for growth. The company boasts net assets of $947.01 million, suggesting a solid foundation upon which it can build.
Huize's financials reveal a mixed picture. While it has a trailing price-to-earnings ratio of 9.64, indicating a potentially undervalued stock, it also reported a loss, which investors will need to consider. The company has net receivables of $299.9 million, reflecting its ability to manage its credit effectively. Moreover, with a net working capital of $211.4 million, Huize is well-positioned to cover its short-term obligations, a crucial factor for sustaining operations and investing in future growth. As Huize navigates the complexities of the insurance industry, these financial indicators could play a pivotal role in determining its trajectory. Despite some mixed signals about its future prospects, Huize Holding has delivered impressive returns in recent months and could be nearing a pivotal moment. Our analysis suggests that the stock is currently overvalued, with a true value closer to $2.42 per share.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Huize Holding income statement, its balance sheet, and the statement of cash flows. Potential Huize Holding investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Huize Holding investors may use each financial statement separately, they are all related. The changes in Huize Holding's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Huize Holding's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Huize Holding
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Huize Holding performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Huize Holding shares is the value that is considered the true value of the share. If
the intrinsic value of Huize is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Huize Holding. Please read more on our
fundamental analysis page.
How effective is Huize Holding in utilizing its assets?
Huize Holding reports assets on its Balance Sheet. It represents the amount of Huize resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Huize Holding aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Property & Casualty Insurance space. To get a better handle on how balance sheet or income statements item affect Huize volatility, please check the breakdown of all its
fundamentals.
Are Huize Holding Earnings Expected to grow?
The
future earnings power of Huize Holding involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Huize Holding factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Huize Holding
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Huize
expected earnings.
Huize Holding Gross Profit
Huize Holding Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Huize Holding previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Huize Holding Gross Profit growth over the last 10 years. Please check Huize Holding's
gross profit and other
fundamental indicators for more details.
Breaking down the case for Huize Holding
The current price rise of Huize Holding may raise some interest from investors. The stock closed today at a share price of
2.70 on
87,800 in trading volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in
January. The stock standard deviation of daily returns for 90 days investing horizon is currently 125.43. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Huize Holding partners.
Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence Huize Holding's decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over Huize Holding's decisions due to their larger holdings.
| 2023 | 2024 (projected) |
Depreciation And Amortization | 13.6M | 19.5M | Interest Income | 1.0M | 972.3K |
Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The current return on assets of Huize suggests not a very effective usage of assets in December.
| Net Tangible Assets346.5 M | | | | Total Current Assets736.6 M | | |
| Net Tangible Assets | 346.46 Million | 23.66 |
| Non Current Assets Total | 243.81 Million | 16.65 |
| Non Currrent Assets Other | 22.08 Million | 1.51 |
| Other Current Assets | 46.24 Million | 3.16 |
| Total Current Assets | 736.56 Million | 50.3 |
| Intangible Assets | 53.28 Million | 3.64 |
| Other Assets | 15.83 Million | 1.08 |
Warren Buffett once said, "Price is what you pay. Value is what you get." This wisdom is particularly relevant when considering Huize Holding's current position. With a market capitalization of $26.78 million and a trailing PE ratio of 9.64, Huize Holding appears undervalued, suggesting potential growth opportunities. The company's solid cash flow from operations of $137.35 million and net income of 70.19 million further bolster its financial health, providing a promising foundation for future expansion. Additionally, its low beta of 0.55 indicates that Huize Holding is less volatile than the broader market, making it an intriguing prospect for investors seeking stability with growth potential in the insurance brokerage sector.
Does Huize Holding have anything more to show in December?
Huize Holding's recent drop in Market Risk Adjusted Performance to -0.97 is raising eyebrows, hinting at a possible price decline ahead. This figure, which measures the company's return against its risk, indicates that investors might be preparing for a downturn. As December approaches, it's important for stakeholders to keep an eye on any strategic decisions or financial updates from Huize Holding that could either alleviate or worsen this risk. Given the market's unpredictability, staying alert to these changes is key for making smart investment choices. The stock's high volatility over the recent period suggests that understanding market trends can help investors time their moves.
In bear markets, increased volatility can affect Huize's stock price, prompting investors to adjust their portfolios as prices drop.Considering the current landscape for Huize Holding, it's essential to weigh the potential risks and rewards before making a decision. With an analyst overall consensus of "Strong Buy" and a possible upside price of
130.48, there appears to be significant room for growth. However, it's crucial to remain cautious, as the market can be unpredictable. If you're holding the stock, it might be worth keeping an eye on these optimistic projections while also being prepared for any market shifts. Balancing optimism with vigilance could be the key to navigating your investment in Huize Holding effectively..
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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