Are Ideanomics (USA Stocks:IDEX) weak technical and fundamental indicators contributing to the current slide?

Ideanomics holds a Market Volatility (i.e., Beta) of 3.0901, indicating a somewhat significant risk compared to the market. The company is projected to outperform the market when it rises. However, if the market yields negative returns, Ideanomics is likely to underperform. While it's crucial to consider Ideanomics' current price history, caution is advised when relying on equity's current price movements. Our approach to predicting a stock's future performance involves examining both its past performance charts and the overall business, including all accessible technical indicators. Ideanomics reveals twenty-one different technical indicators that can assist in evaluating its performance. Ideanomics anticipates a return of -1.41%. Be sure to examine Ideanomics' Jensen Alpha, as well as the relationship between the kurtosis and the day's typical price, to determine if Ideanomics' past performance will recur at some point in the near future.

Main Points

Ideanomics (IDEX) has been on a downward trend, and a look at its fundamental indicators might explain why. The company's net assets stand at a significant $473.44M, but its market capitalization is a mere $26.15M, suggesting that the market is undervaluing the company's assets. This discrepancy could be due to the company's negative earnings per share of 57.84, indicating a loss. Furthermore, the company's debt to equity ratio is relatively low at 0.11%, which is generally a positive sign, but in this case, it might be a reflection of the company's inability to secure financing for growth. These factors combined could be contributing to the stock's current slide.
Published over three months ago
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Reviewed by Ellen Johnson

Ideanomics (NASDAQ: IDEX), a player in the Farm & Heavy Construction Machinery industry, has been experiencing a downward trend in its stock price. This trend may be attributed to both weak technical and fundamental indicators. The company reported a significant loss in its net income from continuing operations, amounting to $267.1M. Additionally, the company's operating income also recorded a loss of $91.2M. The company's total cash from operating activities also dipped into the negative territory, with a loss of $75.5M. These financial indicators may be contributing to the current slide in Ideanomics' stock price. Despite recent unusual performance, the stock's technical and fundamental indicators remain robust. The current turbulence on Wall Street could also indicate long-term gains for the company's investors. However, Ideanomics currently has a bankruptcy probability exceeding 59%. Does this high risk dampen the optimism of the company's investors?
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Ideanomics income statement, its balance sheet, and the statement of cash flows. Potential Ideanomics investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Ideanomics investors may use each financial statement separately, they are all related. The changes in Ideanomics's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ideanomics's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Ideanomics fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Ideanomics performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Ideanomics shares is the value that is considered the true value of the share. If the intrinsic value of Ideanomics is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Ideanomics. Please read more on our fundamental analysis page.

Watch out for price decline

Please consider monitoring Ideanomics on a daily basis if you are holding a position in it. Ideanomics is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Ideanomics stock to be traded above the $1 level to remain listed. If Ideanomics stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How effective is Ideanomics in utilizing its assets?

Ideanomics reports assets on its Balance Sheet. It represents the amount of Ideanomics resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Ideanomics aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Application Software space. To get a better handle on how balance sheet or income statements item affect Ideanomics volatility, please check the breakdown of all its fundamentals.

Are Ideanomics Earnings Expected to grow?

The future earnings power of Ideanomics involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Ideanomics factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Ideanomics stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Ideanomics expected earnings.

Ideanomics Gross Profit

Ideanomics Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Ideanomics 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 Ideanomics Gross Profit growth over the last 10 years. Please check Ideanomics' gross profit and other fundamental indicators for more details.

What is driving Ideanomics Investor Appetite?

The entity reported the previous year's revenue of 114.08 M. Net Loss for the year was (256.73 M) with loss before overhead, payroll, taxes, and interest of (815 K).
Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence Ideanomics' decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over Ideanomics' decisions due to their larger holdings.

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Ideanomics has an asset utilization ratio of 24.1 percent. This suggests that the company is making $0.24 for each dollar of assets. An increasing asset utilization means that Ideanomics is more efficient with each dollar of assets it utilizes for everyday operations.
Current Assets
103.1 M
Assets Non Current
138.9 M
Goodwill
87.8 M
Current Assets103.1 Million31.26
Assets Non Current138.93 Million42.12
Goodwill87.83 Million26.63
As Warren Buffet once wisely noted, it's only when the tide goes out that you learn who's been swimming naked. This sentiment seems to aptly apply to Ideanomics (USA Stocks: IDEX), a company that has been experiencing a significant slide in its stock price. The company's weak technical and fundamental indicators appear to be the main drivers of this downward trend. With a negative net income of 256.7M, the company is incurring substantial losses. Additionally, the company's total operating expenses stand at 114.4M, further straining its financial health. The risk-adjusted performance of -0.1 and a quarterly revenue growth of -0.13 further underscore the company's financial struggles. Despite these challenges, the company's end period cash flow of 269.9M and a debt to equity ratio of 0.11% indicate some financial resilience. However, given these mixed signals, investors should approach Ideanomics with caution.

Will price continue to rise in December 2023?

As of today, the Value at Risk (VaR) for Ideanomics stock has decreased to -11.16, indicating a diminished potential for significant losses. This suggests that the company's risk management strategies are proving effective, and the stock's volatility is on a downward trend. Given this pattern, it is reasonable to anticipate that the price of Ideanomics stock could continue to ascend in December 2023. However, investors should maintain vigilance and closely monitor the company's performance and market conditions, as stock prices can be swayed by a multitude of factors. Ideanomics has exhibited above-average volatility over the selected time horizon. Investors should thoroughly analyze Ideanomics independently to ensure that their intended market timing strategies align with their expectations about Ideanomics' volatility. Understanding different market volatility trends can often assist investors in timing the market. Proper utilization of volatility indicators allows traders to gauge Ideanomics' stock risk against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly affect Ideanomics' stock price, adding stress to investors as they witness their shares' value decline. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop.

Our Bottom Line On Ideanomics

While other companies in the farm & heavy construction machinery industry are either recovering or due for a correction, Ideanomics may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither purchase new shares of Ideanomics nor short 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 Ideanomics.

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Editorial Staff

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