Is MP Materials Stock a Good Investment?

MP Materials Investment Advice

  MP
To provide specific investment advice or recommendations on MP Materials Corp stock, we recommend investors consider the following general factors when evaluating MP Materials Corp. This will help you to make an informed decision on whether to include MP Materials in one of your diversified portfolios:
  • Examine MP Materials' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research MP Materials' leadership team and their track record. Good management can help MP Materials navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Diversified Metals & Mining space and any emerging trends that could impact MP Materials' business and its evolving consumer preferences.
  • Compare MP Materials' performance and market position to its competitors. Analyze how MP Materials is positioned in terms of product offerings, innovation, and market share.
  • Check if MP Materials pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about MP Materials' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in MP Materials Corp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if MP Materials Corp is a good investment.
 
Sell
 
Buy
Strong Sell
Our trade recommendation tool can cross-verify current analyst consensus on MP Materials Corp and to analyze the entity potential to grow this quarter and beyond. To make sure MP Materials Corp is not overpriced, please verify all MP Materials Corp fundamentals, including its cash and equivalents, target price, and the relationship between the price to sales and book value per share . Given that MP Materials Corp has a number of shares shorted of 30.98 M, we recommend you to check MP Materials market performance and probability of bankruptcy to ensure the company can sustain itself this quarter and beyond given your latest risk tolerance and investing horizon.

Market Performance

Very WeakDetails

Volatility

Somewhat reliableDetails

Hype Condition

StaleDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Hyperactively responds to market trendsDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

Strong BuyDetails

Reporting Quality (M-Score)

UnavailableDetails

Examine MP Materials Stock

Researching MP Materials' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 26.0% of the company outstanding shares are owned by corporate insiders. The book value of MP Materials was now reported as 6.88. The company has Price/Earnings To Growth (PEG) ratio of 0.71. MP Materials Corp recorded a loss per share of 0.14. The entity had not issued any dividends in recent years.
To determine if MP Materials is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding MP Materials' research are outlined below:
MP Materials Corp had very high historical volatility over the last 90 days
About 60.0% of the company shares are owned by institutional investors
Latest headline from livemint.com: Lok Sabha elections Amit Shah, Jyotiraditya Scindia, two former CMs among key candidates in phase-3

MP Materials Quarterly Cash And Short Term Investments

947.46 Million

MP Materials uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in MP Materials Corp. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to MP Materials' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
22nd of February 2024
Upcoming Quarterly Report
View
2nd of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
22nd of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View
Earnings surprises can significantly impact MP Materials' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises MP Materials' investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2020-11-18
2020-09-300.05840.07770.019333 
2024-05-02
2024-03-31-0.02-0.04-0.02100 
2024-02-22
2023-12-31-0.04-0.020.0250 
2023-11-02
2023-09-300.010.040.03300 
2023-08-03
2023-06-300.060.090.0350 
2021-08-05
2021-06-300.130.170.0430 
2021-05-06
2021-03-310.080.130.0562 
2022-11-03
2022-09-300.30.360.0620 

MP Materials Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. MP Materials target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. MP Materials' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
   11  Strong Buy
Most MP Materials analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand MP Materials stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of MP Materials Corp, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

MP Materials Target Price Projection

MP Materials' current and average target prices are 15.64 and 31.80, respectively. The current price of MP Materials is the price at which MP Materials Corp is currently trading. On the other hand, MP Materials' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

MP Materials Market Quote on 9th of May 2024

Low Price15.64Odds
High Price15.64Odds

15.64

Target Price

Analyst Consensus On MP Materials Target Price

Low Estimate28.94Odds
High Estimate35.3Odds

31.8

Historical Lowest Forecast  28.94 Target Price  31.8 Highest Forecast  35.3
Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on MP Materials Corp and the information provided on this page.

MP Materials Analyst Ratings

MP Materials' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about MP Materials stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of MP Materials' financials, market performance, and future outlook by experienced professionals. MP Materials' historical ratings below, therefore, can serve as a valuable tool for investors.

Know MP Materials' Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as MP Materials is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading MP Materials Corp backward and forwards among themselves. MP Materials' institutional investor refers to the entity that pools money to purchase MP Materials' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Bank Of New York Mellon Corp2023-12-31
1.7 M
First Trust Advisors L.p.2023-12-31
1.5 M
Ameriprise Financial Inc2023-12-31
1.4 M
Charles Schwab Investment Management Inc2023-12-31
1.2 M
Schmeidler A R & Co Inc2023-12-31
1.1 M
Northern Trust Corp2023-12-31
910.3 K
Bank Of America Corp2023-12-31
895.2 K
Neuberger Berman Group Llc2023-12-31
880.7 K
Segall Bryant & Hamill2023-12-31
809.3 K
Vanguard Group Inc2023-12-31
13.6 M
Blackrock Inc2023-12-31
12.5 M
Note, although MP Materials' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

MP Materials' market capitalization trends

The company currently falls under 'Mid-Cap' category with a market capitalization of 2.68 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate MP Materials's market, we take the total number of its shares issued and multiply it by MP Materials's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

5.02 Billion

MP Materials' profitablity analysis

MP Materials' profitability indicators refer to fundamental financial ratios that showcase MP Materials' ability to generate income relative to its revenue or operating costs. If, let's say, MP Materials is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, MP Materials' executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of MP Materials' profitability requires more research than a typical breakdown of MP Materials' financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
Last ReportedProjected for Next Year
Return On Tangible Assets 0.01  0.02 
Return On Capital Employed 0.01  0.01 
Return On Assets 0.01  0.02 
Return On Equity 0.02  0.02 
The company has Net Profit Margin (PM) of 0.02 %, which suggests that even a small decline in it sales will erase profits and may result in a net loss, or a negative profit margin. This is way below average. Likewise, it shows Net Operating Margin (NOM) of (0.64) %, which signifies that for every 100 dollars of sales, it has a net operating loss of $0.64.
Determining MP Materials' profitability involves analyzing its financial statements and using various financial metrics to determine if MP Materials is a good buy. For example, gross profit margin measures MP Materials' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of MP Materials' profitability and make more informed investment decisions.
The data published in MP Materials' official financial statements usually reflect MP Materials' business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of MP Materials Corp. For example, before you start analyzing numbers published by MP Materials accountants, it's critical to develop an understanding of what MP Materials' liquidity, profitability, and earnings quality are in the context of the Metals & Mining space in which it operates.
Please note, the presentation of MP Materials' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, MP Materials' management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in MP Materials' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of MP Materials Corp. Please utilize our Beneish M Score to check the likelihood of MP Materials' management manipulating its earnings.

Evaluate MP Materials' management efficiency

MP Materials Corp has Return on Asset (ROA) of (0.0165) % which means that for every 100 dollars spent on asset, it generated a loss of $0.0165. This is way below average. MP Materials' management efficiency ratios could be used to measure how well MP Materials manages its routine affairs as well as how well it operates its assets and liabilities. At this time, MP Materials' Return On Tangible Assets are relatively stable compared to the past year. As of 05/09/2024, Return On Assets is likely to grow to 0.02, while Return On Capital Employed is likely to drop 0.01. At this time, MP Materials' Non Current Liabilities Other is relatively stable compared to the past year. As of 05/09/2024, Change To Liabilities is likely to grow to about 2.7 M, while Total Current Liabilities is likely to drop slightly above 66.5 M.
Last ReportedProjected for Next Year
Book Value Per Share 7.71  5.02 
Net Current Asset Value 0.00  0.00 
Tangible Asset Value 0.00  0.00 
Tangible Book Value Per Share 7.66  5.02 
Enterprise Value Over EBITDA 49.97  47.47 
Price Book Value Ratio 2.58  2.70 
Enterprise Value Multiple 49.97  47.47 
Price Fair Value 2.58  2.70 
Enterprise Value3.9 B3.7 B
The analysis of MP Materials' management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze MP Materials' future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of MP Materials Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Beta
2.414

Basic technical analysis of MP Materials Stock

As of the 9th of May, MP Materials owns the Information Ratio of (0.03), mean deviation of 2.62, and Market Risk Adjusted Performance of 0.0332. In connection with fundamental indicators, the technical analysis model lets you check timely technical drivers of MP Materials Corp, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume patterns, or the prices will eventually revert. We were able to interpolate data for thirteen technical drivers for MP Materials, which can be compared to its peers in the sector. Please verify MP Materials Corp market risk adjusted performance, information ratio, as well as the relationship between the Information Ratio and skewness to decide if MP Materials Corp is priced some-what accurately, providing market reflects its prevailing price of 15.64 per share. Given that MP Materials Corp has information ratio of (0.03), we recommend you to check MP Materials's latest market performance to make sure the company can sustain itself sooner or later.

MP Materials' insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific MP Materials insiders, such as employees or executives, is commonly permitted as long as it does not rely on MP Materials' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases MP Materials insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Understand MP Materials' technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing MP Materials' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider MP Materials' intraday indicators

MP Materials intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of MP Materials stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

MP Materials Corporate Filings

10Q
3rd of May 2024
Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations
ViewVerify
8K
2nd of May 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
26th of April 2024
Other Reports
ViewVerify
13A
5th of April 2024
The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934
ViewVerify
MP Materials time-series forecasting models is one of many MP Materials' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary MP Materials' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

MP Materials Stock media impact

Far too much social signal, news, headlines, and media speculation about MP Materials that are available to investors today. That information is available publicly through MP Materials media outlets and privately through word of mouth or via MP Materials internal channels. However, regardless of the origin, that massive amount of MP Materials data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of MP Materials news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of MP Materials relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to MP Materials' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive MP Materials alpha.

MP Materials Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards MP Materials can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

MP Materials Corp Historical Investor Sentiment

Investor biases related to MP Materials' public news can be used to forecast risks associated with an investment in MP Materials. The trend in average sentiment can be used to explain how an investor holding MP Materials can time the market purely based on public headlines and social activities around MP Materials Corp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
MP Materials' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for MP Materials and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average MP Materials news discussions. The higher the estimate score, the more favorable the investor's outlook on MP Materials.

Be your own money manager

Our tools can tell you how much better you can do entering a position in MP Materials without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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MP Materials Corporate Management

Elected by the shareholders, the MP Materials' board of directors comprises two types of representatives: MP Materials inside directors who are chosen from within the company, and outside directors, selected externally and held independent of MP Materials. The board's role is to monitor MP Materials' management team and ensure that shareholders' interests are well served. MP Materials' inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, MP Materials' outside directors are responsible for providing unbiased perspectives on the board's policies.
James JDPres ChairmanProfile
Andrew McknightIndependent DirectorProfile
Sheila BangaloreGeneral Counsel and Chief Strategy OfficerProfile
Randall WeisenburgerIndependent DirectorProfile
Elliot HoopsGeneral Counsel, SecretaryProfile
Maryanne LavanIndependent DirectorProfile

How to buy MP Materials Stock?

To provide specific investment advice or recommendations on MP Materials Corp stock, we recommend investors consider the following general factors when evaluating MP Materials Corp. This will help you to make an informed decision on whether to include MP Materials in one of your diversified portfolios:
  • Examine MP Materials' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research MP Materials' leadership team and their track record. Good management can help MP Materials navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Diversified Metals & Mining space and any emerging trends that could impact MP Materials' business and its evolving consumer preferences.
  • Compare MP Materials' performance and market position to its competitors. Analyze how MP Materials is positioned in terms of product offerings, innovation, and market share.
  • Check if MP Materials pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about MP Materials' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in MP Materials Corp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if MP Materials Corp is a good investment.

Already Invested in MP Materials Corp?

The danger of trading MP Materials Corp is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of MP Materials is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than MP Materials. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile MP Materials Corp is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether MP Materials Corp is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if MP Materials Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Mp Materials Corp Stock. Highlighted below are key reports to facilitate an investment decision about Mp Materials Corp Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in MP Materials Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey.
You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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When running MP Materials' price analysis, check to measure MP Materials' 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 MP Materials is operating at the current time. Most of MP Materials' value examination focuses on studying past and present price action to predict the probability of MP Materials' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move MP Materials' price. Additionally, you may evaluate how the addition of MP Materials to your portfolios can decrease your overall portfolio volatility.
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Is MP Materials' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of MP Materials. If investors know MP Materials will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about MP Materials listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.56)
Earnings Share
(0.14)
Revenue Per Share
1.169
Quarterly Revenue Growth
(0.49)
Return On Assets
(0.02)
The market value of MP Materials Corp is measured differently than its book value, which is the value of MP Materials that is recorded on the company's balance sheet. Investors also form their own opinion of MP Materials' value that differs from its market value or its book value, called intrinsic value, which is MP Materials' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because MP Materials' market value can be influenced by many factors that don't directly affect MP Materials' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between MP Materials' value and its price, as these two are different measures arrived at by various means. Investors typically determine if MP Materials is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MP Materials' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.