Rio Paranapanema (Brazil) Buy Hold or Sell Recommendation
| GEPA3 Stock | BRL 28.52 1.98 6.49% |
Assuming the 90 days trading horizon and complete risk avoidance on your part, our recommendation regarding Rio Paranapanema Energia is 'Strong Sell'. A buy or sell recommendation is an automated directive regarding whether to purchase or sell Rio Paranapanema Energia given historical horizon and risk tolerance. When we issue a 'buy' or 'sell' recommendation for Rio Paranapanema Energia, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out Rio Paranapanema 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 Rio and provide practical buy, sell, or hold advice based on investors' constraints. Rio Paranapanema Energia. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
Rio |
Execute Rio Paranapanema Buy or Sell Advice
The Rio recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Rio Paranapanema Energia. Macroaxis does not own or have any residual interests in Rio Paranapanema Energia or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Rio Paranapanema's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Modest | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Above Average | Details | |
Economic Sensitivity | Very regressive towards the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Rio Paranapanema Trading Alerts and Improvement Suggestions
| Rio Paranapanema had very high historical volatility over the last 90 days | |
| Rio Paranapanema has high likelihood to experience some financial distress in the next 2 years | |
| Rio Paranapanema has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
| Rio Paranapanema Energia has accumulated 911.96 M in total debt with debt to equity ratio (D/E) of 88.9, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Rio Paranapanema Energia has a current ratio of 0.93, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Rio Paranapanema until it has trouble settling it off, either with new capital or with free cash flow. So, Rio Paranapanema's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Rio Paranapanema Energia sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Rio to invest in growth at high rates of return. When we think about Rio Paranapanema's use of debt, we should always consider it together with cash and equity. | |
| The entity reported the revenue of 1.35 B. Net Loss for the year was (8.8 M) with profit before overhead, payroll, taxes, and interest of 512.81 M. | |
| Rio Paranapanema Energia has accumulated about 180.67 M in cash with (808.86 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 11.33. | |
| Roughly 99.0% of Rio Paranapanema shares are held by company insiders |
Rio Paranapanema Returns Distribution Density
The distribution of Rio Paranapanema's historical returns is an attempt to chart the uncertainty of Rio Paranapanema's future price movements. The chart of the probability distribution of Rio Paranapanema daily returns describes the distribution of returns around its average expected value. We use Rio Paranapanema Energia price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Rio Paranapanema returns is essential to provide solid investment advice for Rio Paranapanema.
| Mean Return | 0.29 | Value At Risk | -7.02 | Potential Upside | 7.43 | Standard Deviation | 4.00 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Rio Paranapanema 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.
Rio Paranapanema 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 Rio Paranapanema or Utilities 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 Rio Paranapanema'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 Rio 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 | 0.44 | |
β | Beta against Dow Jones | -1.45 | |
σ | Overall volatility | 3.48 | |
Ir | Information ratio | 0.04 |
Rio Paranapanema Volatility Alert
Rio Paranapanema Energia shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Rio Paranapanema's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Rio Paranapanema's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Rio Paranapanema Fundamentals Vs Peers
Comparing Rio Paranapanema'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 Rio Paranapanema's direct or indirect competition across all of the common fundamentals between Rio Paranapanema and the related equities. This way, we can detect undervalued stocks with similar characteristics as Rio Paranapanema or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Rio Paranapanema's fundamental indicators could also be used in its relative valuation, which is a method of valuing Rio Paranapanema by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Rio Paranapanema to competition |
| Fundamentals | Rio Paranapanema | Peer Average |
| Return On Equity | 0.075 | -0.31 |
| Return On Asset | 0.0565 | -0.14 |
| Profit Margin | 0.11 % | (1.27) % |
| Operating Margin | 0.25 % | (5.51) % |
| Current Valuation | 3.2 B | 16.62 B |
| Shares Outstanding | 31.48 M | 571.82 M |
| Shares Owned By Insiders | 99.05 % | 10.09 % |
| Shares Owned By Institutions | 0.03 % | 39.21 % |
| Price To Earning | 15.66 X | 28.72 X |
| Price To Book | 1.12 X | 9.51 X |
| Price To Sales | 1.75 X | 11.42 X |
| Revenue | 1.35 B | 9.43 B |
| Gross Profit | 512.81 M | 27.38 B |
| EBITDA | 334.54 M | 3.9 B |
| Net Income | (8.8 M) | 570.98 M |
| Cash And Equivalents | 180.67 M | 2.7 B |
| Cash Per Share | 11.33 X | 5.01 X |
| Total Debt | 911.96 M | 5.32 B |
| Debt To Equity | 88.90 % | 48.70 % |
| Current Ratio | 0.95 X | 2.16 X |
| Book Value Per Share | 21.85 X | 1.93 K |
| Cash Flow From Operations | (808.86 M) | 971.22 M |
| Earnings Per Share | 1.58 X | 3.12 X |
| Target Price | 51.0 | |
| Number Of Employees | 308 | 18.84 K |
| Beta | 0.59 | -0.15 |
| Market Capitalization | 2.35 B | 19.03 B |
| Total Asset | 3.96 B | 29.47 B |
| Z Score | 1.2 | 8.72 |
| Annual Yield | 0.04 % | |
| Net Asset | 3.96 B | |
| Last Dividend Paid | 1.06 |
Rio Paranapanema Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Rio . 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.
| Daily Balance Of Power | (9,223,372,036,855) | |||
| Rate Of Daily Change | 0.94 | |||
| Day Median Price | 28.52 | |||
| Day Typical Price | 28.52 | |||
| Price Action Indicator | (0.99) | |||
| Period Momentum Indicator | (1.98) | |||
| Relative Strength Index | 49.39 |
About Rio Paranapanema Buy or Sell Advice
When is the right time to buy or sell Rio Paranapanema Energia? Buying financial instruments such as Rio 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.
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Additional Tools for Rio Stock Analysis
When running Rio Paranapanema's price analysis, check to measure Rio Paranapanema'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 Rio Paranapanema is operating at the current time. Most of Rio Paranapanema's value examination focuses on studying past and present price action to predict the probability of Rio Paranapanema's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rio Paranapanema's price. Additionally, you may evaluate how the addition of Rio Paranapanema to your portfolios can decrease your overall portfolio volatility.