Uxin currently holds $812.71M in liabilities, with a Debt to Equity (D/E) ratio of 5.47, suggesting potential difficulties in meeting its financial obligations. Its current ratio of 0.73 indicates a negative working capital, raising concerns about its ability to cover financial obligations when due. While debt can aid Uxin's growth, it could also lead to shareholder dilution if the company issues additional shares at low prices. If Uxin fails to repay its debt, shareholders could potentially lose their investment. However, debt can be a valuable tool for Uxin to invest in high-return growth. Uxin's asset utilization ratio stands at 286.54%, meaning it generates $2.87 for each dollar of assets, indicating increasing operational efficiency.
Top Findings
Despite Uxin's notable gains today, a closer look at the company's financials reveals a concerning picture. With a negative return on assets of
11% and a significant net income loss of
$137.2 million, the company's current valuation of
$5.49 billion may be overestimated, suggesting that the stock could be overpriced.
We determine the current worth of Uxin using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Uxin based exclusively on its
fundamental and basic
technical indicators. By analyzing Uxin's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Uxin's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Uxin. We calculate exposure to Uxin's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Uxin's related companies.
Uxin Investment Alerts
Uxin investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Uxin performance across your portfolios.Please check all
investment alerts for Uxin
Uxin Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Uxin value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Uxin competition to find
correlations between indicators driving the intrinsic value of Uxin.
Uxin Gross Profit
Uxin Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Uxin 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 Uxin Gross Profit growth over the last 10 years. Please check Uxin's
gross profit and other
fundamental indicators for more details.
Breaking down the case for Uxin
The entity reported the previous year's revenue of 2.06
B. Net Loss for the year was (137.17
M) with profit before overhead, payroll, taxes, and interest of 47.72
M.
Margins Breakdown
Uxin profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Uxin itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Uxin profit margins.
| Pretax Profit Margin | (0.9) |
| Operating Profit Margin | (0.85) |
| Net Profit Margin | (0.88) |
| Gross Profit Margin | 0.35 |
Uxin Market Cap is very stable at the moment. Uxin Market Cap is increasing over the last 8 years.
"Buy when there's blood in the streets," is a saying that might resonate with investors eyeing Uxin, a player in the Auto & Truck Dealerships industry. Despite a negative operating margin of 19% and a net income loss of $137.2M, the company's stock made notable gains today, trading at a typical price of $1.8. Uxin's current ratio stands at 0.74X, indicating a somewhat risky liquidity position. However, with a market capitalization of $311.98M and total assets of $718.65M, the company's valuation suggests potential for significant upsurge. Investors should keep a close eye on Uxin, as its beta of 1.03 indicates the stock's price movements are roughly in line with the market. .
Are Uxin technical ratios showing a correction?
Uxin's recent standard deviation increase of over 6.44 suggests heightened volatility in its trading pattern, potentially signaling a near-term correction. Investors should monitor these technical ratios for a possible trend reversal. However, other market factors and the company's
fundamentals should also be considered before making investment decisions. Uxin's above-average volatility over the selected period can help investors time the market. Using volatility indicators properly allows traders to measure Uxin's stock risk against
market volatility during both bullish and bearish trends. The increased volatility associated with bear markets can directly affect
Uxin's stock price and cause investor stress as share values drop, often prompting portfolio rebalancing through the purchase of diverse financial instruments.
In conclusion, Uxin's stock showed a strong performance today, which could potentially be a precursor to a surge. The company's current market value is at
$1.93, closely aligned with its real value of
$1.88. Analysts have set a target price estimated value of $2.8235, with the highest estimated target price reaching $3.13 and the lowest at $2.57. Despite the possible downside price of $0.0193, the potential upside price is significantly higher at $8.14. The overall consensus among analysts is to hold the stock. Considering these factors, investors should keep a close eye on Uxin's performance in the market, as it shows promising potential for growth. .
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Uxin. Please refer to our
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