In the world of investing, the choice of which stock to part with can often feel like navigating a minefield. When considering Meta Materials, a company in the electronic components sector, investors are faced with some challenging metrics. With a market capitalization of just $3.5M and an EBITDA loss of 33M, the financial landscape looks daunting. Despite a glimmer of hope in the form of a strong buy consensus from analysts, the stock's current valuation at around $0.53 raises questions about its future potential. As investors weigh their options, understanding the intricacies of Meta Materials becomes crucial in deciding whether to hold on or let go. Today, we might witness that Tempo Automation is struggling to bounce back from its recent drop, with its shares down 9.38% to Meta Materials' $0.33. While traders often get caught up in the competition within the semiconductor and equipment sectors, it’s worth considering both Meta Materials and Tempo Automation as potential short-term investment opportunities. In this analysis, we’ll explore the competitive dynamics between these two companies and what they could mean for investors looking for quick gains.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Meta or Tempo is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Meta Materials's Liquidity
Meta Materials
financial leverage refers to using borrowed capital as a funding source to finance Meta Materials ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Meta Materials 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 Meta Materials' 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 Meta Materials' 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 Meta Materials's total debt and its cash.
Correlation Between Meta and Tempo Automation Holdings
In general, Delisted Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Meta Materials together with similar or unrelated positions with a negative correlation. For example, you can also add Tempo Automation to your portfolio. If Tempo Automation is not perfectly correlated to Meta Materials it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Meta Materials, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Meta Materials and Tempo Automation in your portfolio? Please note if you are using this as a pair-trade strategy between Meta Materials and Tempo Automation, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between MMAT and TMPO for more information.
Breaking down Meta Materials Indicators
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check Meta Materials revenue. Based on the latest financial disclosure, Meta Materials reported 7.84
M of revenue.
This is 99.81% lower than that of the Semiconductors & Semiconductor Equipment sector and 99.49% lower than that of the
Information Technology industry. The revenue for all United States stocks is 99.92% higher than that of the company. As for Tempo Automation we see revenue of 12.05
M, which is 99.22% lower than that of the Information Technology
| MMAT | 7.84 Million | 0.5 |
| Sector | 1.54 Billion | 98.72 |
| TMPO | 12.05 Million | 0.77 |
In investing, the key to success often lies in knowing when to cut your losses. Meta Materials is currently facing significant challenges, with an EBITDA loss of 33 million and a staggering probability of bankruptcy at 96%. The stock trades at a low price of 0.54, reflecting its struggles, while its current ratio of 1.54 suggests it can cover short-term liabilities. With a market capitalization of just 3.52 million and a price-to-sales ratio of 0.36, investors may want to consider whether holding onto this stock is worth the risk, especially when compared to alternatives like Tempo Automation..
Meta Materials has 97 percent odds to stay over $0.52 this year
Meta Materials has recently experienced a rise in volatility, with its stock's standard deviation surpassing 10.0. This means the stock price is fluctuating more than usual. On a positive note, there's a strong 97% chance that the stock will stay above $0.52 for the year, suggesting it has some resilience despite the ups and downs. While Meta Materials could be an interesting penny stock investment, it's important to remember that many penny stocks are speculative and can be influenced by hype. Investors should be cautious and look out for signs of artificial price boosts, such as spam emails or sudden news.
Thoroughly research the company's leadership and understand both the potential rewards and risks before diving in. Timing your investment is crucial, as prices often revert after hype fades.Investing in Meta Materials stock presents a compelling opportunity, especially as the company resets amidst a broader market rally. With an analyst consensus rating of "Strong Buy," there’s potential for significant gains, particularly given the possible upside price of
10.61. While the naive expected forecast value sits at
0.73, the highest estimated target price from analysts reaches
1.50, indicating a strong belief in the company's future performance. As investors weigh these factors, Meta Materials could be an intriguing addition to a diversified portfolio, especially for those looking to capitalize on innovative technologies in a rapidly evolving market..
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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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