When comparing Hashicorp and SentinelOne, it's important to look at how market fluctuations impact their stock prices. This analysis can help you determine if combining these two companies in your portfolio could reduce overall market risk. You might also consider a pair trading strategy, where you take a long position in SentinelOne while shorting Hashicorp. For more details, check out our
pair correlation module.
Now, let’s dive into the numbers. Hashicorp's asset utilization ratio stands at 34.47%. This means the company generates $0.34 for every dollar of assets it has. A rising asset utilization ratio indicates that Hashicorp is becoming more efficient in using its assets for daily operations.
Main Ideas
When considering an investment in HashiCorp, one must weigh its potential against competitors like SentinelOne. With a market capitalization of
6.8B and a notable quarterly revenue growth of 16.4%, HashiCorp shows promise in the software infrastructure sector. However, the company faces challenges, including a high probability of bankruptcy at 49.75%, which could deter risk-averse investors. As the stock hovers around its 52-week high of
34.05, it may be worth monitoring for those looking to capitalize on its growth trajectory while being mindful of the inherent risks.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Hashicorp. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Hashicorp, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Hashicorp's Liquidity
Hashicorp
financial leverage refers to using borrowed capital as a funding source to finance Hashicorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Hashicorp 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 Hashicorp'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 Hashicorp'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 Hashicorp's total debt and its cash.
Hashicorp Gross Profit
Hashicorp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Hashicorp 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 Hashicorp Gross Profit growth over the last 10 years. Please check Hashicorp's
gross profit and other
fundamental indicators for more details.
Is Hashicorp valued sensibly 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
Let me take a closer look at Hashicorp revenue. Based on the latest financial disclosure, Hashicorp reported 583.14
M of revenue.
This is 85.69% lower than that of the Software sector and significantly higher than that of the
Information Technology industry. The revenue for all United States stocks is 93.82% higher than that of Hashicorp. As for SentinelOne we see revenue of 621.15
M, which is much higher than that of the Information Technology
| Hashicorp | 583.14 Million |
| Sector | 0.0 |
| SentinelOne | 621.15 Million |
In the world of investing, the saying "buy low, sell high" often guides decisions. HashiCorp, trading on NASDAQ, has shown some resilience with a current ratio of 4.72X, indicating strong liquidity. However, the company is grappling with significant losses, including a net income loss of 190.7 million and an operating income loss of 254.3 million. Despite these challenges, HashiCorp's potential upside of 47.37% and a target price of 34.5 suggest that there may be room for recovery. With a market cap of 5.53 billion and a solid institutional ownership of 79.20%, investors might find HashiCorp an intriguing option compared to its peers..
Hashicorp is expecting lower volatility in October
Hashicorp's stock is showing signs of stability, with a recent variance of over 0.12 indicating a potential drop in volatility this October. This change could create a calmer trading environment, making it an appealing time for investors looking to buy or hold shares. With low volatility, a skewness of -0.46, and kurtosis of 3.03, Hashicorp may attract risk-averse investors seeking steady growth. Understanding market volatility trends can help investors time their moves effectively. In bear markets, increased volatility can pressure Hashicorp's stock price, causing stress for investors as they watch their shares decline. This often leads to portfolio rebalancing as they seek to invest in more stable options.
Our Takeaway on Hashicorp Investment
When is the right time to buy or sell Hashicorp? Buying stocks such as Hashicorp 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.
While some retail investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Hashicorp.
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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 Hashicorp. Please refer to our
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