Are Borqs Technologies (NASDAQ:BRQS) weak basic indicators contributing to the latest fall?

Borqs Technologies Return on Average Equity is relatively stable at the moment as compared to the past year. Borqs Technologies reported last year Return on Average Equity of 0.67. As of 12/28/2021, Return on Invested Capital is likely to grow to 0.78, while Earnings before Tax are likely to drop (37.9 M). Borqs Technologies is scheduled to announce its earnings tomorrow. Technology space may be getting hot again, let's check if Borqs Technologies is sending any bullish signals to investors. We will analyze why it could be a much better year for Borqs Technologies shareholders. Borqs Technologies current probability of bankruptcy is under 19 percent. Will retail investors continue to be optimistic, or should we expect a sell-off?
Published over a year ago
View all stories for Borqs Technologies | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Ellen Johnson

The firm shows a Beta (market volatility) of 0.4181, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Borqs's beta means in this case. As returns on the market increase, Borqs Technologies returns are expected to increase less than the market. However, during the bear market, the loss on holding Borqs Technologies will be expected to be smaller as well. Even though it is essential to pay attention to Borqs Technologies historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Borqs Technologies exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Borqs Technologies has an expected return of -0.36%. Please be advised to confirm Borqs Technologies value at risk, as well as the relationship between the kurtosis and price action indicator to decide if Borqs Technologies performance from the past will be repeated at some point in the near future.
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 Borqs Technologies income statement, its balance sheet, and the statement of cash flows. Potential Borqs Technologies investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Borqs Technologies investors may use each financial statement separately, they are all related. The changes in Borqs Technologies's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Borqs Technologies'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 Borqs Technologies fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Borqs Technologies performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Borqs Technologies shares is the value that is considered the true value of the share. If the intrinsic value of Borqs 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 Borqs Technologies. Please read more on our fundamental analysis page.

Watch out for price decline

Please consider monitoring Borqs Technologies on a daily basis if you are holding a position in it. Borqs Technologies is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Borqs Technologies stock to be traded above the $1 level to remain listed. If Borqs Technologies stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Borqs Technologies's Liquidity

Borqs Technologies financial leverage refers to using borrowed capital as a funding source to finance Borqs Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Borqs Technologies 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 Borqs Technologies' 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 Borqs Technologies' 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 Borqs Technologies's total debt and its cash.

A Deeper Analysis

The entity reported the previous year's revenue of 28.23 M. Net Loss for the year was (49 M) with profit before overhead, payroll, taxes, and interest of 1.6 M.

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Borqs Technologies has an asset utilization ratio of 46.92 percent. This connotes that the company is making $0.47 for each dollar of assets. An increasing asset utilization means that Borqs Technologies is more efficient with each dollar of assets it utilizes for everyday operations.
Current Assets
36.4 M
Current Assets36.36 Million78.07
Assets Non Current5.63 Million12.09
Goodwill3.63 Million7.8
Tax Assets949,0532.04

Will Borqs price fall impact its balance sheet?

Variance is down to 38.05. It may connote a possible volatility fall. Borqs Technologies is displaying above-average volatility over the selected time horizon. Investors should scrutinize Borqs Technologies independently to ensure intended market timing strategies are aligned with expectations about Borqs Technologies volatility. Borqs Technologies is a potential penny stock. Although Borqs Technologies 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 Borqs Technologies. We encourage investors to look for the signals such us 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 Borqs instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its 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.

Our Final Take On Borqs Technologies

While some firms in the software—application industry are either recovering or due for a correction, Borqs may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Borqs valuation and our trade advice on Borqs Technologies is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Borqs Technologies.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

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 Raphi Shpitalnik do not own shares of Borqs Technologies. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to [email protected]