Cathay Financial (Taiwan) Buy Hold or Sell Recommendation
| 2882 Stock | TWD 48.90 0.35 0.72% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Cathay Financial Holding is 'Strong Hold'. Macroaxis provides Cathay Financial buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding 2882 positions. The advice algorithm takes into account all of Cathay Financial's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Cathay Financial's buy or sell advice are summarized below:
Real Value 47.84 | Hype Value 48.9 | Market Value 48.9 | Naive Value 49.64 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Cathay Financial Holding given historical horizon and risk tolerance towards Cathay Financial. When Macroaxis issues a 'buy' or 'sell' recommendation for Cathay Financial Holding, the advice is generated through an automated system that utilizes algorithms and statistical models.
Cathay |
Execute Cathay Financial Buy or Sell Advice
The Cathay recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Cathay Financial Holding. Macroaxis does not own or have any residual interests in Cathay Financial Holding or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Cathay Financial's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Cathay Financial Trading Alerts and Improvement Suggestions
| The company has accumulated 272.56 B in total debt with debt to equity ratio (D/E) of 0.59, which is about average as compared to similar companies. Cathay Financial Holding has a current ratio of 0.59, 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 Cathay Financial until it has trouble settling it off, either with new capital or with free cash flow. So, Cathay Financial'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 Cathay Financial Holding sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Cathay to invest in growth at high rates of return. When we think about Cathay Financial's use of debt, we should always consider it together with cash and equity. | |
| About 36.0% of Cathay Financial shares are owned by insiders or employees |
Cathay Financial Returns Distribution Density
The distribution of Cathay Financial's historical returns is an attempt to chart the uncertainty of Cathay Financial's future price movements. The chart of the probability distribution of Cathay Financial daily returns describes the distribution of returns around its average expected value. We use Cathay Financial Holding price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Cathay Financial returns is essential to provide solid investment advice for Cathay Financial.
| Mean Return | 0.18 | Value At Risk | -1.84 | Potential Upside | 2.21 | Standard Deviation | 1.13 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Cathay Financial 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.
Cathay Financial 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 Cathay Financial or Insurance 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 Cathay Financial'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 Cathay 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 NYSE Composite | 0.16 | |
β | Beta against NYSE Composite | 0.13 | |
σ | Overall volatility | 1.13 | |
Ir | Information ratio | 0.08 |
Cathay Financial Volatility Alert
Cathay Financial Holding has relatively low volatility with skewness of 0.14 and kurtosis of 0.17. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cathay Financial'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 Cathay Financial'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.Cathay Financial Fundamentals Vs Peers
Comparing Cathay Financial'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 Cathay Financial's direct or indirect competition across all of the common fundamentals between Cathay Financial and the related equities. This way, we can detect undervalued stocks with similar characteristics as Cathay Financial or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Cathay Financial's fundamental indicators could also be used in its relative valuation, which is a method of valuing Cathay Financial by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Cathay Financial to competition |
| Fundamentals | Cathay Financial | Peer Average |
| Return On Equity | 0.12 | -0.31 |
| Return On Asset | -0.0129 | -0.14 |
| Profit Margin | 0.13 % | (1.27) % |
| Operating Margin | (0.42) % | (5.51) % |
| Current Valuation | (1.27 T) | 16.62 B |
| Shares Outstanding | 14.67 B | 571.82 M |
| Shares Owned By Insiders | 36.05 % | 10.09 % |
| Shares Owned By Institutions | 20.27 % | 39.21 % |
| Price To Earning | 10.43 X | 28.72 X |
| Price To Book | 1.96 X | 9.51 X |
| Price To Sales | 0.94 X | 11.42 X |
| Revenue | 621.86 B | 9.43 B |
| Gross Profit | 325.74 B | 27.38 B |
| EBITDA | (235.56 B) | 3.9 B |
| Net Income | 139.51 B | 570.98 M |
| Cash And Equivalents | 591.17 B | 2.7 B |
| Cash Per Share | 47.06 X | 5.01 X |
| Total Debt | 272.56 B | 5.32 B |
| Debt To Equity | 0.59 % | 48.70 % |
| Current Ratio | 0.60 X | 2.16 X |
| Book Value Per Share | 21.23 X | 1.93 K |
| Cash Flow From Operations | 72.52 B | 971.22 M |
| Earnings Per Share | 5.11 X | 3.12 X |
| Price To Earnings To Growth | 1.99 X | 4.89 X |
| Target Price | 49.2 | |
| Number Of Employees | 57.1 K | 18.84 K |
| Beta | 0.61 | -0.15 |
| Market Capitalization | 639.58 B | 19.03 B |
| Total Asset | 11.59 T | 29.47 B |
| Z Score | 1.2 | 8.72 |
| Annual Yield | 0.08 % | |
| Five Year Return | 4.29 % | |
| Net Asset | 11.59 T |
Cathay Financial Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Cathay . 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.
About Cathay Financial Buy or Sell Advice
When is the right time to buy or sell Cathay Financial Holding? Buying financial instruments such as Cathay 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.
Use Investing Ideas to Build Portfolios
In addition to having Cathay Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Computers Thematic Idea Now
Computers
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Computers theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Computers Theme or any other thematic opportunities.
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Check out Cathay Financial 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. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Complementary Tools for Cathay Stock analysis
When running Cathay Financial's price analysis, check to measure Cathay Financial'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 Cathay Financial is operating at the current time. Most of Cathay Financial's value examination focuses on studying past and present price action to predict the probability of Cathay Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cathay Financial's price. Additionally, you may evaluate how the addition of Cathay Financial to your portfolios can decrease your overall portfolio volatility.
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