| 2022 | 2023 | 2024 | 2025 (projected) | Depreciation And Amortization | 32.4M | 14.7M | 16.9M | 23.2M | Interest Income | 7.4M | 2.6M | 972K | 923.4K |
Is it time to hedge Boqii Holding (USA Stocks:BQ) high volatility
 | By Raphi Shpitalnik | Macroaxis Story |
Boqii Holding Limited has approximately $162.85 million in cash, supported by $66.83 million in positive cash flow from operations. Its cash per share stands at 16.19, making it an appealing takeover candidate, especially since it continues to generate steady cash flow. The company’s performance score is 13 out of 100, indicating room for improvement. With a Beta of 1.57, Boqii exhibits higher market volatility—meaning it tends to outperform during bullish periods but may lag when the market declines. To better understand its potential, consider examining its downside variance and the relationship between the Treynor ratio and kurtosis. These metrics can provide deeper insights into future returns and the risks associated with holding Boqii.
Critical Takeaways
Given Boqii Holding's recent price swings, with a 5.25 point change and a high Coefficient Of Variation of 585.6, traders should consider hedging strategies to manage the elevated risk. The stock's maximum drawdown of 233.7 underscores the potential for sharp declines, making it crucial to protect gains amid ongoing volatility. With a last traded price of 14.82 and a trading volume of 10.4M, staying alert to sudden shifts could help mitigate downside exposure.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Gabriel Shpitalnik
When it comes to Boqii Holding Limited, recent trading has been anything but steady. The stock has experienced notable swings, with the current price hovering around $16.07, close to its day median of $16.7. Despite a generally positive analyst outlook—most recommend a buy with a target price around $16.9—there's underlying volatility that raises questions about timing. The company's latest fiscal year ended in March with a loss of about $0.45 per share, adding to the uncertainty. While the valuation suggests a real value near $14.25 and a potential upside to $50.01, the daily rate of change at 1.55 and a momentum indicator of 5.25 hint at ongoing fluctuations. Given this mix of positive forecasts and recent instability, investors might consider hedging strategies to manage risk until clearer trends emerge. Over a 60-day period, Boqii Holding is projected to deliver nearly 56 times the market’s return. However, this potential comes with significant risk—it's about 56 times more volatile than the benchmark. The stock offers roughly 0.18 units of return per unit of risk, compared to the Dow Jones, which provides about 0.13. While some traders may shrug off this volatility, it’s important to weigh whether the expected gains justify the heightened risk. Recent risk factors suggest the stock could be overvalued, with its true worth closer to $14.25 per share. Before jumping in, investors should carefully consider if the hefty upside outweighs the potential for sharp swings in value.Volatility is a rate at which the price of Boqii Holding or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Boqii Holding may increase or decrease. In other words, similar to Boqii's beta indicator, it measures the risk of Boqii Holding and helps estimate the fluctuations that may happen in a short period of time. So if prices of Boqii Holding fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Boqii Holding's Liquidity
Boqii Holding financial leverage refers to using borrowed capital as a funding source to finance Boqii Holding Limited ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Boqii Holding 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 Boqii Holding'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 Boqii Holding'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 Boqii Holding's total debt and its cash.
Boqii Holding Gross Profit
Boqii Holding Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Boqii Holding 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 Boqii Holding Gross Profit growth over the last 10 years. Please check Boqii Holding's gross profit and other fundamental indicators for more details.
Boqii Holding Volatility Drivers
Boqii Holding unsystematic risk is unique to Boqii Holding Limited and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Boqii Holding you can also buy Tandy Leather Factory. You can also mitigate this risk by investing in the consumer discretionary sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Boqii Holding important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Boqii Holding income statement and balance sheet. Here are more details about Boqii volatility.Click cells to compare fundamentals
A Deeper Analysis
The latest price spike of Boqii Holding Limited could raise concerns from retail investors as the firm is trading at a share price of 14.82 on 10,449,350 in volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in November. The stock standard deviation of daily returns for 90 days investing horizon is currently 32.99. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Boqii Holding partners.
Warren Buffett once said, "Risk comes from not knowing what you're doing," which rings especially true for Boqii Holding Limited (NASDAQ:BQ) amid its recent volatility. The stock has experienced significant fluctuations, with a maximum drawdown of 233.7 and a beta of 1.09, indicating it moves slightly more than the overall market. Despite a current market cap of just 26.78 million and a price-to-sales ratio of 0.06X, the company faces a high probability of bankruptcy at 96.00%, raising questions about its stability. With a total debt of 50.06 million and a return on assets of -0.11, hedging strategies might be worth considering until the stock stabilizes or shows clearer signs of recovery..
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