EROAD (Australia) Buy Hold or Sell Recommendation

ERD Stock   0.95  0.02  2.06%   
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding EROAD is 'Strong Sell'. A buy or sell recommendation is an automated directive regarding whether to purchase or sell EROAD given historical horizon and risk tolerance. When we issue a 'buy' or 'sell' recommendation for EROAD, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out EROAD 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 EROAD and provide practical buy, sell, or hold advice based on investors' constraints. EROAD. 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 EROAD Buy or Sell Advice

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

Time Horizon

Risk Tolerance

Execute Advice
Sell EROADBuy EROAD
Strong Sell

Market Performance

OKDetails

Volatility

DangerousDetails

Hype Condition

StaleDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Almost neglects market trendsDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon EROAD has a Mean Deviation of 2.0, Semi Deviation of 2.19, Standard Deviation of 2.79, Variance of 7.77, Downside Variance of 9.16 and Semi Variance of 4.79
We provide trade advice to complement the prevailing expert consensus on EROAD. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available now. To make sure EROAD is not overpriced, please confirm all EROAD fundamentals, including its price to book, revenue, and the relationship between the shares owned by institutions and price to sales .

EROAD Trading Alerts and Improvement Suggestions

EROAD has some characteristics of a very speculative penny stock
The company reported the revenue of 175 M. Net Loss for the year was (300 K) with profit before overhead, payroll, taxes, and interest of 46.1 M.
About 27.0% of the company shares are held by company insiders

EROAD Returns Distribution Density

The distribution of EROAD's historical returns is an attempt to chart the uncertainty of EROAD's future price movements. The chart of the probability distribution of EROAD daily returns describes the distribution of returns around its average expected value. We use EROAD price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of EROAD returns is essential to provide solid investment advice for EROAD.
Mean Return
0.24
Value At Risk
-4.04
Potential Upside
5.68
Standard Deviation
2.79
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of EROAD 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.

EROAD Cash Flow Accounts

202020212022202320242025 (projected)
Change In Cash53.7M(43.2M)(5.8M)6.4M5.8M6.0M
Free Cash Flow(17.8M)(53.3M)(31.6M)(600K)(540K)(567K)
Depreciation8.6M11.2M20.8M52.5M60.4M63.4M
Other Non Cash Items13.4M15.4M6.3M(1.3M)(1.5M)(1.4M)
Capital Expenditures17.8M53.3M55.7M53.5M61.5M64.6M
Net Income2.5M(9.6M)(3M)(300K)(270K)(283.5K)
End Period Cash Flow57.1M13.9M8.1M14.5M16.7M18.9M
Investments(22.8M)(134.6M)(67.1M)(57.4M)(51.7M)(54.2M)
Net Borrowings7.3M100K(2.4M)(4.5M)(4.1M)(3.8M)

EROAD 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 EROAD or Software 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 EROAD'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 EROAD 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
0.22
β
Beta against Dow Jones-0.34
σ
Overall volatility
2.76
Ir
Information ratio 0.09

EROAD Volatility Alert

EROAD shows above-average downside volatility for the selected time horizon. EROAD is a potential penny stock. Although EROAD may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in EROAD. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on EROAD instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

EROAD Fundamentals Vs Peers

Comparing EROAD'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 EROAD's direct or indirect competition across all of the common fundamentals between EROAD and the related equities. This way, we can detect undervalued stocks with similar characteristics as EROAD or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of EROAD's fundamental indicators could also be used in its relative valuation, which is a method of valuing EROAD by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare EROAD to competition
FundamentalsEROADPeer Average
Return On Equity-0.0013-0.31
Return On Asset0.0044-0.14
Profit Margin(0) %(1.27) %
Operating Margin0.03 %(5.51) %
Current Valuation207.6 M16.62 B
Shares Outstanding187.16 M571.82 M
Shares Owned By Insiders27.13 %10.09 %
Shares Owned By Institutions32.30 %39.21 %
Price To Book0.63 X9.51 X
Price To Sales0.95 X11.42 X
Revenue175 M9.43 B
Gross Profit46.1 M27.38 B
EBITDA43 M3.9 B
Net Income(300 K)570.98 M
Total Debt42.9 M5.32 B
Book Value Per Share1.67 X1.93 K
Cash Flow From Operations52.9 M971.22 M
Target Price1.4
Beta1.96-0.15
Market Capitalization179.16 M19.03 B
Total Asset433.5 M29.47 B
Retained Earnings(32.7 M)9.33 B
Working Capital6.6 M1.48 B
Net Asset433.5 M

EROAD Market Momentum

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

When is the right time to buy or sell EROAD? Buying financial instruments such as EROAD 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.

Use Investing Ideas to Build Portfolios

In addition to having EROAD in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Health Care ETFs
Health Care ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Health Care ETFs theme has 47 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Health Care ETFs Theme or any other thematic opportunities.
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Additional Tools for EROAD Stock Analysis

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