AMTD IDEA Group (AMTD:NYE) 10 Positive Signals Detected

STA Research
by: STA Research
AMTD IDEA Group

Stock Target Advisor’s own stock analysis of AMTD Digital Inc. stock is Slightly Bullish, which is based on 10 positive signals and 6 negative signals. At the last closing, AMTD stock price was USD 2.08AMTD stock price has changed by +0.11% over the past week, +0.92% over the past month and +0.00% over the last year.

AMTD IDEA Group, an investment holding company, engages in investment banking activities in Hong Kong, Mainland China, the United States, and internationally. The company operates through three segments: Investment Banking, Asset Management, and Strategic Investment. The company was formerly known as AMTD International Inc. AMTD IDEA Group was incorporated in 2019 and is based in Central, Hong Kong. AMTD IDEA Group operates as a subsidiary of AMTD Group Company Limited.

 

What we like:

High market capitalization:

AMTD Digital Inc.  is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to earnings:

AMTD Digital Inc. stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity:

The company management of AMTD Digital Inc. has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

The company management of AMTD Digital Inc. has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

AMTD Digital Inc. has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt:

AMTD Digital Inc. is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the AMTD stock forecast and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow:

AMTD Digital Inc. had positive total cash flow in the most recent four quarters.

Positive free cash flow:

AMTD Digital Inc. had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis:

AMTD digital stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

High Gross Profit to Asset Ratio:

AMTD digital stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Poor risk adjusted returns:

AMTD Digital Inc. is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median total returns:

AMTD Digital Inc. has under-performed its peers on annual average total returns in the past 5 years.

Below median dividend returns:

The average income yield of AMTD Digital Inc. over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value:

AMTD digital stock is trading high compared to its peers median on a price to book value basis.

Low Revenue Growth:

AMTD digital stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth:

AMTD digital stock has shown below median dividend growth in the previous 5 years compared to its sector.

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

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