What is our outlook on Ryde (USA Stocks:RYDE) and Ispire (USA Stocks:ISPR)?

Ryde Group (RYDE) appears to be on a growth trajectory, especially when compared to its peer Ispire (ISPR). With a potential upside of 13.42, investors may find the stock appealing, particularly given its recent price increase of 42.75%. However, the company is grappling with a free cash flow loss of 1.6M, which raises questions about its short-term financial health. As Ryde Group navigates these challenges, its performance metrics, including a Treynor Ratio of 1.26, suggest that it may still offer attractive returns for risk-tolerant investors.

Main Ideas

When you look at Ryde Group and Ispire, you can see how market ups and downs affect their stock prices. This comparison can help you decide if combining these two stocks in your portfolio might reduce overall risk. You might also consider a pair trading strategy, where you take a long position in Ispire while shorting Ryde. For more details, check out our pair correlation module. Now, let’s dive into the numbers. Asset utilization measures how much revenue a company generates for each dollar of assets. Ryde's latest return on assets suggests that it isn't using its assets very effectively as of September.
Published over two months ago
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Reviewed by Michael Smolkin

In the world of investing, timing can be everything. Ryde Group (RYDE), a player in the technology sector, has been making waves recently, especially as it prepares to navigate the competitive landscape alongside Ispire (ISPR). With a recent cash flow of 1.3M and a free cash flow loss of 1.6M, investors are keenly watching how Ryde will leverage its resources for growth. As the company approaches its fiscal year-end in December, the market is buzzing with speculation about its potential to rebound and thrive. With a current valuation market value of 17.33, the question remains: is Ryde Group set to capitalize on emerging opportunities, or will it struggle to find its footing? With many cautious investors steering clear of the tech sector, it's worth taking a closer look at Ryde Group and how it compares to Ispire Technology and similar companies. In this analysis, we'll explore the competitive landscape between Ryde and Ispire, highlighting their strengths and weaknesses. Understanding these dynamics could provide valuable insights for those considering an investment in either company.
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 Ryde or A2Z is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Correlation Between Ryde and A2Z Smart Technologies

In general, 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 Ryde together with similar or unrelated positions with a negative correlation. For example, you can also add A2Z Smart to your portfolio. If A2Z Smart is not perfectly correlated to Ryde 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 Ryde, 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 Ryde and A2Z Smart in your portfolio? Please note if you are using this as a pair-trade strategy between Ryde and A2Z Smart, 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 RYDE and AZ for more information.

Ryde Gross Profit

Ryde Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Ryde 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 Ryde Gross Profit growth over the last 10 years. Please check Ryde's gross profit and other fundamental indicators for more details.

Is Ryde valued correctly by the market?

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 take a look at Ryde revenue. Based on the latest financial disclosure, Ryde Group reported 6.45 M of revenue.
This is 99.84% lower than that of the Technology sector and 99.56% lower than that of the Software - Application industry. The revenue for all United States stocks is 99.93% higher than that of the company. As for Ispire Technology we see revenue of 115.61 M, which is 92.11% lower than that of the Software - Application
Sector
1.5 B
RYDE6.45 Million0.41
Sector1.47 Billion92.31
ISPR115.61 Million7.28
"Opportunities don't happen, you create them." - Chris Grosser. Ryde Group (RYDE) is currently navigating a challenging financial landscape, with total cash from operating activities showing losses of 1.2 million and a staggering 96% probability of bankruptcy. Despite these hurdles, the stock exhibits a potential upside of 13.42, suggesting that there may be room for growth if the company can turn its fortunes around. Meanwhile, Ispire (ISPR) is also in the spotlight, making it crucial for investors to consider how these two companies might perform in tandem. With a daily balance of power at 0.91, RYDE could be positioned for a rebound if it successfully manages its debt of 3.94 million and improves its cash flow situation..

Ryde implied volatility may change after the surge

Ryde Group's stock has recently displayed a skewness of 0.75, signaling a shift in market sentiment. This positive skew indicates that investors are optimistic about potential price increases, which may lead to changes in implied volatility. As traders respond to this trend, we could see fluctuations in option pricing, creating an intriguing opportunity for those looking to take advantage of Ryde's market movements. Currently, Ryde Group is experiencing above-average volatility. Understanding these volatility trends can help investors time their moves effectively.
High volatility, especially during bear markets, can significantly affect Ryde's stock price and create stress for investors as they watch their investments decline. This often prompts them to adjust their portfolios by exploring different financial options as prices drop.Ryde Group's impressive rise of over 42% stands out, especially when many stocks are struggling. This surge suggests strong investor confidence, and with a possible upside price of 24.22, there’s potential for further gains. The current market value sits at 17.33, indicating that Ryde could still be undervalued compared to its hype value of 18.05. As we approach the fiscal year-end in December, keeping an eye on Ryde Group could be a smart move for those looking to capitalize on its momentum..

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Editorial Staff

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 Raphi Shpitalnik do not own shares of Ryde Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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