Tesla, Inc. [NASDAQ: TSLA] shares went higher by 0.75% from its previous closing of $224.74, now trading at the price of $226.43, also adding 1.69 points. Is TSLA stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 6.55 million contracts. Compared to the average trading volume of TSLA shares, the company saw a far better performance. Moreover, the stock has a float and a +8.21% run over in the last seven days. TSLA share price has been hovering between $387.46 and $176.99 lately, and is definitely worthy of attention.
Tesla, Inc. [NASDAQ:TSLA]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Tesla, Inc. [TSLA], the latest average analyst recommendation we can see is from the quarter closing in December. On average, stock market experts give TSLA an Hold rating. Its stock price has been found in the range of 176.99 to 387.46. This is compared to its latest closing price of $224.74.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Tesla, Inc. [TSLA] is sitting at 2.97. This is compared to 1 month ago, when its average rating was 3.03.
For the quarter ending in Mar-19 Tesla, Inc. [TSLA] generated $4.54 billion in sales. That’s 11.85% lower than the average estimate of $5.15 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Wed 7 Aug (In 49 Days).
Fundamental Analysis of Tesla, Inc. [TSLA]
Now let’s turn to look at profitability: with a current Operating Margin for Tesla, Inc. [TSLA] sitting at -1.18 and its Gross Margin at +18.83, this company’s Net Margin is now -4.30%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is -1.33, and its Return on Invested Capital has reached -2.60%. Its Return on Equity is -21.31, and its Return on Assets is -3.34. These metrics suggest that this Tesla, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Tesla, Inc. [TSLA] has generated a Total Debt to Total Equity ratio of 280.86. Similarly, its Total Debt to Total Capital is 73.74, while its Total Debt to Total Assets stands at 46.49. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 225.79, and its Long-Term Debt to Total Capital is 59.28. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 28.81 and its Total Debt to EBITDA Value is 8.39. The Enterprise Value to Sales for this firm is now 2.10, and its Total Debt to Enterprise Value stands at 0.20. Tesla, Inc. [TSLA] has a Price to Book Ratio of 11.67, a Price to Cash Flow Ratio of 27.05.
Shifting the focus to workforce efficiency, Tesla, Inc. [TSLA] earns $439,627 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 29.31 and its Total Asset Turnover is 0.74. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.52 and its Current Ratio is 0.83. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Tesla, Inc. [TSLA] has 175.94M shares outstanding, amounting to a total market cap of $39.84B. Its stock price has been found in the range of 176.99 to 387.46. At its current price, it has moved down by -41.56% from its 52-week high, and it has moved up 27.93% from its 52-week low.
This stock’s Relative Strength Index (RSI) is at 57.70. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Tesla, Inc. [TSLA] a Reliable Buy?
Tesla, Inc. [TSLA] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.