The Secoo Holding Limited (SECO) shares are trading at lower $3.22.
To add more color to this target, the company’s high over the last year is $8.25 and the low is $2.11. Over the last 52 weeks, SECO is down -60.97% while the S&P 500 is down -0.33%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, SECO reported a profit of $41.71 million. Secoo Holding Limited also saw revenues increase to $287.13 million. In addition, SECO has free cash flow of -$40.18 million as of 12-2019. The company’s EBITDA came in at $7.33 million which compares well with its peers.
SECO booked profit margins of 2.30%, its Return on Equity (ROE) is 9.90%, and its Return on Assets is 3.50%. All told, it is clear that, SECO needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. SECO has a short ratio of 0.34 and outstanding shares of 50.24M.
SECO has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.59 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.42. Secoo Holding Limited SECO also noted assets of $717.8 million at the end of the last quarter. Investors should also keep an eye on sector updates as SECO has historically followed its peers on positive news.
All told, Secoo Holding Limited SECO has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SECO represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Secoo Holding Limited SECO is now commanding a market cap of 205.66M and a float of 14.67M. SECO is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of SECO stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in SECO, either long or short, and we have not been compensated for this article.