Noah Holdings currently holds roughly 3.69
B in cash with 632.9
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 54.93, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Investing in Noah Holdings, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Noah Holdings along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Noah Holdings' 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.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Noah Holdings. Your research has to be compared to or analyzed against Noah Holdings' peers to derive any actionable benefits. When done correctly, Noah Holdings' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Noah Holdings.
How important is Noah Holdings's Liquidity
Noah Holdings
financial leverage refers to using borrowed capital as a funding source to finance Noah Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Noah Holdings 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 Noah Holdings' 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 Noah Holdings' 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 Noah Holdings's total debt and its cash.
Noah Holdings Gross Profit
Noah Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Noah Holdings 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 Noah Holdings Gross Profit growth over the last 10 years. Please check Noah Holdings'
gross profit and other
fundamental indicators for more details.
Noah Holdings Correlation with Peers
Investors in Noah can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Noah Holdings. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Noah Holdings and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Noah is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Noah for more details
Breaking down Noah Holdings Indicators
Noah Holdings has Sharpe Ratio of -0.12, which conveys that the firm had -0.12% of return per unit of risk over the last 3 months. Our standpoint towards estimating the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. Noah Holdings exposes twenty-one different
technical indicators, which can help you to evaluate volatility embedded in its stock price that cannot be
diversified away. Please verify Noah Holdings
mean deviation of 1.99, and Risk Adjusted Performance of
(0.11) to check out the risk estimate we provide.
Our Noah analysis signifies possible reversion in June
Recent potential upside is at 4.0.
Noah Holdings exhibits very low volatility with skewness of 0.2 and kurtosis of 0.61. However, we advise investors to further study Noah Holdings technical indicators to ensure that all market info is available and is reliable. Understanding different
market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Noah Holdings' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact
Noah Holdings' 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 stocks as prices fall.
Our Takeaway on Noah Holdings Investment
Although few other entities in the asset management industry are either recovering or due for a correction, Noah Holdings may not be performing as strong as the other in terms of long-term growth potentials. While some traders 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 Noah Holdings.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Noah Holdings. Please refer to our
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