Test Rite (Taiwan) Performance

2908 Stock  TWD 20.15  0.15  0.74%   
The entity has a beta of 0.0999, which indicates not very significant fluctuations relative to the market. As returns on the market increase, Test Rite's returns are expected to increase less than the market. However, during the bear market, the loss of holding Test Rite is expected to be smaller as well. At this point, Test Rite International has a negative expected return of -0.0451%. Please make sure to validate Test Rite's treynor ratio, value at risk, and the relationship between the total risk alpha and maximum drawdown , to decide if Test Rite International performance from the past will be repeated at some point in the near future.

Risk-Adjusted Performance

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Over the last 90 days Test Rite International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Test Rite is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors. ...more
Begin Period Cash Flow2.5 B
Total Cashflows From Investing Activities-285.3 M
  

Test Rite Relative Risk vs. Return Landscape

If you would invest  2,075  in Test Rite International on August 31, 2024 and sell it today you would lose (60.00) from holding Test Rite International or give up 2.89% of portfolio value over 90 days. Test Rite International is generating negative expected returns and assumes 0.546% volatility on return distribution over the 90 days horizon. Simply put, 4% of stocks are less volatile than Test, and 99% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days.
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Assuming the 90 days trading horizon Test Rite is expected to under-perform the market. But the company apears to be less risky and when comparing its historical volatility, the company is 1.37 times less risky than the market. the firm trades about -0.08 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating roughly 0.19 of returns per unit of risk over similar time horizon.

Test Rite Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Test Rite's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Test Rite International, and traders can use it to determine the average amount a Test Rite's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = -0.0826

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Negative Returns2908

Estimated Market Risk

 0.55
  actual daily
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96% of assets are more volatile

Expected Return

 -0.05
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Most of other assets have higher returns

Risk-Adjusted Return

 -0.08
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Most of other assets perform better
Based on monthly moving average Test Rite is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Test Rite by adding Test Rite to a well-diversified portfolio.

Test Rite Fundamentals Growth

Test Stock prices reflect investors' perceptions of the future prospects and financial health of Test Rite, and Test Rite fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Test Stock performance.

About Test Rite Performance

Evaluating Test Rite's performance through its fundamental ratios, provides valuable insights into its operational efficiency and profitability. For instance, if Test Rite has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if Test Rite has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements. Please also refer to our technical analysis and fundamental analysis pages.
Test-Rite International Co., Ltd. imports and exports hand tools, auto parts, machinery, furniture, and various home appliances worldwide. The company was founded in 1978 and is headquartered in Taipei, Taiwan. TEST RITE operates under Home Improvement Stores classification in Taiwan and is traded on Taiwan Stock Exchange. It employs 5170 people.

Things to note about Test Rite International performance evaluation

Checking the ongoing alerts about Test Rite for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Test Rite International help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
Test Rite generated a negative expected return over the last 90 days
Test Rite has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations
About 78.0% of the company shares are owned by insiders or employees
Evaluating Test Rite's performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate Test Rite's stock performance include:
  • Analyzing Test Rite's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
  • Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Test Rite's stock is overvalued or undervalued compared to its peers.
  • Examining Test Rite's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
  • Evaluating Test Rite's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Test Rite's management team can help you assess the Company's leadership.
  • Pay attention to analyst opinions and ratings of Test Rite's stock. These opinions can provide insight into Test Rite's potential for growth and whether the stock is currently undervalued or overvalued.
It's essential to remember that evaluating Test Rite's stock performance is not an exact science, and many factors can impact Test Rite's stock market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.

Additional Tools for Test Stock Analysis

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