Does CRRC CORP have anything left?
 | By Rifka Kats | Macroaxis Story |
In this story I am going to address all ongoing CRRC CORP shareholders. I will look into why despite ongoing dip, the longer-term fundamental drivers of the firm are still sound. CRRC CORP LTD chance of financial distress is under 39.00 . Assuming 30 trading days horizon, CRRC CORP is expected to under-perform the market. But the firm apears to be less risky and when comparing its historical volatility, the company is 1.41 times less risky than the market. the firm trades about -0.11 of its potential returns per unit of risk. The market is currently generating roughly -0.02 of returns per unit of risk over similar time horizon. We found twenty-six available fundamental indicators for CRRC CORP LTD H YC 1, which can be compared to its rivals. To make sure the equity is not overpriced, please confirm all CRRC CORP LTD financials, including its Gross Profit, Net Income and the relationship between Revenue and EBITDA . Use CRRC CORP to enhance returns of your portfolios. The stock experiences very speculative upward sentiment. . Check odds of CRRC CORP to be traded at €0.612 in 30 days.
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Reviewed by Vlad Skutelnik
CRRC CORP classifies itself under Industrials sector and is part of Railroads industry. The firm dividends can provide a clue to current valuation of the stock. The entity one year expected dividend income is about €0.23 per share. The company has price-to-book (P/B) ratio of 0.71. Some equities with similar Price to Book (P/B) outperform the market in the long run. CRRC CORP LTD last dividend was issued on 2020-06-24.
Investing in CRRC, 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 CRRC 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.
Watch out for price decline
Please consider monitoring CRRC on a daily basis if you are holding a position in it. CRRC is trading at a penny-stock level, and the possibility of delisting is much higher compared to other 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 CRRC stock to be traded above the $1 level to remain listed. If CRRC 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 CRRC's Liquidity
CRRC financial leverage refers to using borrowed capital as a funding source to finance CRRC Limited ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. CRRC 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 CRRC'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 CRRC'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 CRRC's total debt and its cash.
CRRC Correlation with Peers
Investors in CRRC can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in CRRC Limited. Diversification will allow for the same portfolio return with reduced risk. The correlation table of CRRC and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities CRRC 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 CRRC for more details
Breaking it down a bit more
The big decline in price over the last few months for CRRC CORP LTD could raise concerns from investors as the firm closed today at a share price of 0.4896 on 1,000.00 in volume. The company management failed to add value to investors and positioning the firm supply of money to exploit market volatility in April. However, diversifying your holdings with CRRC CORP LTD H YC 1 or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 4.69. This high volatility is attributed to the latest market swings and not so good earning reports for some of the CRRC CORP partners. CRRC CORP is trading at 0.4896. This is 4.82 percent increase. Opened at 0.4896. To conclude, our analysis show that CRRC CORP Almost neglects market trends. The firm is over valued and projects below average chance of financial distress for the next 2 years. Our overall 'Buy/Hold/Sell' recommendation 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 Rifka Kats do not own shares of CRRC Limited. Please refer to our Terms of Use for any information regarding our disclosure principles.