Sogou strongly advances today in spite of modest market slide

This piece will outline Sogou. We will inspect the possibilities of making Sogou into a steady grower in August. Sogou Inc odds of financial distress is under 20%. Sogou appears to be relatively risky, given 1 month investment horizon. Sogou Inc owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.16, which indicates the firm had 0.16% of return per unit of risk over the last month. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By inspecting Sogou Inc technical indicators you can presently evaluate if the expected return of 0.57% is justified by implied risk. Please operate Sogou semi deviation of 2.63, coefficient of variation of 571.97, and risk adjusted performance of 0.3255 to confirm if our risk estimates are consistent with your expectations.
Published over a year ago
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Reviewed by Raphi Shpitalnik

Sogou currently holds 19.16 M in liabilities with Debt to Equity (D/E) ratio of 0.02, which may suggest the entity is not taking enough advantage from borrowing. This firm has a current ratio of 2.49, suggesting that it is liquid enough and is able to pay its financial obligations when due. Sogou Inc exercises its assets roughly 1.39 %, realizing $0.0139 for each dollar of assets held by the company. A flourishing asset utilization indicates the company is being more effective with each dollar of assets it has. In other words asset utilization of Sogou shows how effective it operates for each dollar spent on its assets. Let me now go over Sogou Profit Margin. Based on the latest financial disclosure Sogou Inc has Profit Margin of 5.21%. This is 144.99% lower than that of the Communication Services sector, and significantly higher than that of Internet Content & Information industry, The Profit Margin for all stocks is 510.24% lower than Sogou Inc.

How important is Sogou's Liquidity

Sogou financial leverage refers to using borrowed capital as a funding source to finance Sogou Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Sogou 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 Sogou'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 Sogou'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 Sogou's total debt and its cash.

What is driving Sogou Investor Appetite?

Sogou makes 5.21 % profit margin. The firm reported previous year revenue of 1.18 B. Net Income was 61.35 M with profit before overhead, payroll, taxes, and interest of 433.8 M. The company has a beta of 0.535. Let's try to break down what Sogou's beta means in this case. Sogou returns are very sensitive to returns on the market. As the market goes up or down, Sogou is expected to follow. The beta indicator helps investors understand whether Sogou moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Sogou deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. Sogou Inc reported previous year revenue of 1.18 B. Net Income was 61.35 M with profit before overhead, payroll, taxes, and interest of 433.8 M.

Are Sogou technical ratios showing a recoup?

Sogou last coefficient of variation surges over 571.97. Sogou Inc shows above-average downside volatility of 3.17 for the selected time horizon. We advise investors to inspect Sogou Inc further and to ensure all market timing and asset allocation strategies are consistent with estimation about Sogou future alpha.

The Current Takeaway on Sogou Investment

In spite of many other companies under internet content & information industry are still a bit expensive, Sogou may offer a potential longer-term growth to institutional investors. To summarize, as of 9th of July 2020, we believe that Sogou is currently overvalued with low chance of distress in the next two years. Our actual 30 days 'Buy/Sell' recommendation on the company is Strong Hold. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither buy new shares of Sogou nor sell your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Sogou.

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Editorial Staff

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 Ellen Johnson do not own shares of Sogou Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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