Dingdong Cayman has roughly 7.29
B in cash with (4.17
B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 168.37, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The new return on assets of Dingdong denotes not a very effective usage of assets in December.
Investing in Dingdong ADR, 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 Dingdong ADR 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.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Dingdong ADR's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Dingdong ADR's Liquidity
Dingdong ADR
financial leverage refers to using borrowed capital as a funding source to finance Dingdong ADR ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Dingdong ADR 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 Dingdong ADR'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 Dingdong ADR'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 Dingdong ADR's total debt and its cash.
Dingdong ADR Gross Profit
Dingdong ADR Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Dingdong ADR previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Dingdong ADR Gross Profit growth over the last 10 years. Please check Dingdong ADR's
gross profit and other
fundamental indicators for more details.
Dingdong ADR Correlation with Peers
Investors in Dingdong can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Dingdong ADR. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Dingdong ADR and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Dingdong 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 Dingdong for more details
Is Dingdong ADR valued adequately by the market?
Dingdong Cayman secures Sharpe Ratio (or Efficiency) of -0.0828, which denotes the company had -0.0828% of return per unit of risk over the last 3 months. Macroaxis standpoint towards predicting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. Dingdong Cayman exposes twenty-eight different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to confirm Dingdong Cayman
mean deviation of 2.93, and Coefficient Of Variation of
(627.18) to check the risk estimate we provide.
Are Dingdong Cayman technical ratios showing a reversion?
Dingdong Cayman new variance upsurges over 21.0. Dingdong Cayman exhibits very low volatility with skewness of -0.41 and kurtosis of 4.35. However, we advise investors to further study Dingdong Cayman technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Dingdong Cayman's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Dingdong Cayman'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 stocks as prices fall.
Dingdong Cayman Implied Volatility
Dingdong Cayman's implied volatility exposes the market's sentiment of Dingdong Cayman stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Dingdong Cayman's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Dingdong Cayman stock will not fluctuate a lot when Dingdong Cayman's options are near their expiration.
Our Bottom Line On Dingdong Cayman
While few other entities within the grocery stores industry are still a little expensive, even after the recent corrections, Dingdong Cayman may offer a potential longer-term growth to stakeholders. To conclude, as of the 13th of December 2021, we believe that at this point, Dingdong Cayman is
undervalued with
average odds of distress within the next 2 years. Our final 'Buy-Sell' recommendation on the company is
Buy.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile 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 Gabriel Shpitalnik do not own shares of Dingdong ADR. Please refer to our
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