As we approach July, investors should keep a close eye on Nano Dimension (NASDAQ: NNDM), a key player in the Computer Hardware industry. Despite a challenging market environment, the company's 200 Day Moving Average stands at
2.58, indicating a potential for stability. However, investors should also consider the company's high Short Ratio of
17.33, which suggests a significant level of short interest and could lead to increased volatility. Therefore, while Nano Dimension may offer potential upside, it also carries a degree of risk that investors should carefully consider.
Main Ideas
Nano Dimension, with a Beta (Market Risk) of 0.99, offers potential diversification benefits in a portfolio. The company's returns are highly sensitive to market fluctuations, tending to mirror market ups and downs. Nano Dimension is projected to yield a return of -0.0191%. It's crucial to verify Nano Dimension's total risk alpha, skewness, and the correlation between skewness and the day's median price. This will help determine if past performance will recur in the near future.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as Nano Dimension. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the
market sentiment and impact your forecasting results.
Predictive Modules for Nano Dimension
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Nano Dimension'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 Nano Dimension's Liquidity
Nano Dimension
financial leverage refers to using borrowed capital as a funding source to finance Nano Dimension ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Nano Dimension 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 Nano Dimension'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 Nano Dimension'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 Nano Dimension's total debt and its cash.
Nano Dimension Gross Profit
Nano Dimension Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Nano Dimension 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 Nano Dimension Gross Profit growth over the last 10 years. Please check Nano Dimension's
gross profit and other
fundamental indicators for more details.
Is Nano Dimension valued appropriately by the market?
Nano Dimension exhibits very low volatility with skewness of 0.29 and kurtosis of 1.01. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Nano Dimension'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 Nano Dimension'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.
Returns Breakdown
| Return On Tangible Assets | (0.0539) |
| Return On Capital Employed | (0.13) |
| Return On Assets | (0.0538) |
| Return On Equity | (0.0564) |
"Never put all your eggs in one basket" is a timeless investment adage that rings true when considering the anticipated performance of Nano Dimension (NASDAQ: NNDM) in July. With a market capitalization of $602.12M and a robust working capital of $859.52M, the company appears financially healthy. However, the stock's high price-to-sales ratio of 10.26X and a 52-week low of $2.06 suggest potential volatility. Despite the risk, Wall Street's target price for the stock is $10, indicating a potential upside. Investors should approach NNDM with a diversified strategy, keeping in mind the company's strong financial position and the potential for significant returns..
Nano showing symptom of lower volatility
Despite recent deviation upswings over 2.0, Nano Dimension's stock shows signs of reduced volatility, indicating potential price stabilization. This could appeal to risk-averse investors. Although the upswing suggests increased price fluctuations, the trend towards lower volatility suggests these swings are lessening, potentially making Nano Dimension a more attractive investment. With a skewness of 0.29 and kurtosis of 1.01, the stock exhibits low volatility. Understanding market volatility trends can help investors time the market. Using volatility indicators correctly allows traders to measure Nano Dimension's stock risk against market volatility during bullish and bearish trends. High volatility in bear markets can impact Nano Dimension's stock price and stress investors as they see their shares' value drop, often prompting portfolio rebalancing with different financial instruments.
Our Bottom Line On Nano Dimension
When is the right time to buy or sell Nano Dimension? Buying stocks such as Nano Dimension isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
On the whole, as of the 2nd of June 2024, we believe that at this point, Nano Dimension is
undervalued with
low odds of distress within the next 2 years. Our present buy-hold-sell advice on the firm is
Hold.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Nano Dimension. Please refer to our
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