Macroaxis Stories

Are Carbon (USA Stocks:CREV) sophisticated investors starting to hold back?

December 24, 2024  By Raphi Shpitalnik
Macroaxis Story
Timing is everything, especially in the stock market. As we look at Carbon Revolution, trading under the ticker CREV on NASDAQ, the question of whether it will surge in January is intriguing. The company, nestled in the consumer cyclical sector and specializing in automobile components, has caught the eye of analysts with a strong buy consensus. Despite a recent IPO in November 2023, the stock has shown some volatility, with a 52-week low of 2 and a 200-day moving average of 7.74. Analysts have set ambitious target prices, ranging from 76.44 to 93.24, suggesting significant upside potential. However, with a current Wall Street target price of 39, investors should weigh the optimism against the stock's real valuation of 23.72. While the short ratio is low at 0.44, indicating limited bearish sentiment, the market's reaction in the coming weeks will be crucial. As always, investors should keep an eye on market trends and company developments to make informed decisions. Currently, Carbon Revolution's debt-to-assets ratio remains relatively stable compared to last year. The operating cycle is expected to increase to 339.38 in 2024, while the enterprise value might slightly decrease to just over $623.5 million. This discussion will explore why Carbon Revolution could be a valuable addition to your investment portfolio and how it might offer significant opportunities for savvy investors.
Published 3 days ago
View all stories for Carbon Revolution | View All Stories

Reviewed by Ellen Johnson

Considering Carbon Revolution's current quote of 9.16 and a Wall Street target price of 39, there's potential for significant upside if the company can capitalize on market opportunities. However, with a maximum drawdown of 41.83, investors should be cautious and consider the risks before making a decision.

Main Points

Carbon Revolution is currently priced at $23.72 per share, which seems undervalued given its moderate growth outlook. Notably, around 19% of the company's shares are owned by insiders. This group includes company executives, board members, and their close associates who might have early access to internal information. Such insider ownership can be a positive sign, suggesting confidence in the company's future prospects. For a deeper dive into Carbon Revolution's ownership structure and detailed analysis, you might want to explore our latest insights on the company.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Carbon Revolution Public. 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 Carbon Revolution

Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Carbon Revolution'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.
Hype
Prediction
Details
Intrinsic
Valuation
Details
1 Analysts
Consensus
Details
Earnings
Estimates (0)
Details

How does Carbon utilize its cash?

At this time, Carbon Revolution's Capital Expenditures is fairly stable compared to the past year. . To perform a cash flow analysis of Carbon Revolution, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Carbon Revolution is receiving and how much cash it distributes out in a given period. The Carbon Revolution cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Carbon Revolution Gross Profit

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

Carbon Revolution Balance Sheet Drivers

Understanding current and past Carbon Revolution financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. At this time, Carbon Revolution's Total Assets are fairly stable compared to the past year. Non Current Assets Total is likely to climb to about 116.8 M in 2024, whereas Intangible Assets are likely to drop slightly above 1 M in 2024.
Details

What is driving Carbon Revolution Investor Appetite?

The latest price climb of Carbon Revolution Public could raise concerns from sophisticated investors as the firm is trading at a share price of 9.16 on very low momentum in volume. The company management teams may have good odds in positioning the firm resources to exploit market volatility in January. The stock standard deviation of daily returns for 90 days investing horizon is currently 19.45. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Carbon Revolution partners.

Margin Breakdown

Pretax Profit Margin(1.96)
Operating Profit Margin(1.56)
Net Profit Margin(1.96)
Gross Profit Margin(0.53)
As Warren Buffett once said, "Risk comes from not knowing what you're doing." Investors eyeing Carbon Revolution (NASDAQ: CREV) for a potential surge in January should consider the company's current financial landscape. With a market capitalization of just $7.33 million and a high probability of bankruptcy at 96%, the stock presents significant risk. Despite a Wall Street target price of $39, which suggests substantial upside from its current levels, the company's return on equity is a loss of 7.15%, indicating challenges in generating profit from shareholders' investments. Additionally, with only 5.23% of shares owned by institutions, the stock lacks strong institutional backing, which could be a red flag for potential investors..

Our perspective of the latest Carbon Revolution climb

Carbon Revolution has recently shown a slight improvement in its risk-adjusted performance, now at 0.03, indicating a better balance between risk and return. However, this doesn't guarantee stability. Investors should remain cautious, as the stock price could still face downward pressure. While the recent uptick offers some optimism, it's important to be aware of potential volatility that could affect future performance. Carbon Revolution is experiencing higher-than-average volatility, which can influence market timing decisions.
By using volatility indicators, traders can assess the stock's risk compared to market fluctuations during both rising and falling markets. Increased volatility in bear markets can negatively impact Carbon Revolution's stock price, prompting investors to adjust their portfolios by diversifying into other assets as prices decline.As we look ahead to January, the potential for Carbon Revolution's stock to experience significant volatility is certainly on the table. With an Analyst Overall Consensus of "Strong Buy" and the highest estimated target price reaching 93.24, there's a clear indication of optimism among analysts. However, investors should remain cautious, considering the Valuation Market Value stands at 9.16, which suggests a discrepancy between market perception and intrinsic value. This gap could lead to unpredictable swings, making it crucial for investors to stay informed and agile. Balancing the promising analyst projections with the inherent risks will be key to navigating any turbulence in the coming months..

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. 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 Raphi Shpitalnik do not own shares of Carbon Revolution Public. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com