Is Full Truck Alliance Co. Ltd. (YMM) A Good Investment?

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Full Truck Alliance Co. Ltd. (NYSE:YMM) finished Thursday with an addition of $0.34 to close at $8.16, an upside of 4.35 percent. An average of 5,153,100 shares of common stock have been traded in the last five days. There was a fall of -$0.41 in the past week, and it reached a new high 7 times over the past 12 months. The last 20 days have seen an average of 8,163,295 shares traded, while the 50-day average volume stands at 7,794,218.

YMM stock has increased by 9.68% in the last month. The company shares reached their 1-month lowest point of $7.37 on 11/30/22. With the stock rallying to its 52-week high on 02/17/22, shares of the company touched a low of $4.12 and a high of $10.16 in 52 weeks. It has reached a new high 7 times so far this year and lost -2.51% or -$0.21 in price. In spite of this, the price is down -19.69% from the 52-week high.


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Valuation Metrics

Full Truck Alliance Co. Ltd. (YMM) has a trailing price-to-sales (P/S) ratio at 10.64, the price-to-book (PB) ratio at 1.79.

Financial Health

The quick ratio of Full Truck Alliance Co. Ltd. for the three months ended September 29 was 11.40, and the current ratio was 11.40, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending September 29. Its gross profit as reported stood at $332.21 million compared to revenue of $730.79 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Full Truck Alliance Co. Ltd.’s return on assets was -3.20%.

Earnings Surprise

For the three-month period that ended September 29, Full Truck Alliance Co. Ltd. had $3.39 billion in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$654.82 million in the quarter, while revenues were grew 100.0%. The analyst consensus anticipated Full Truck Alliance Co. Ltd.’s latest quarter earnings to come in at $0.02 per share, but it turned out to be $0.07, a 250.00% surprise. For the quarter, EBITDA amounted to $19.92 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Full Truck Alliance Co. Ltd. (YMM) price momentum. RSI 9-day as of the close on 29 December was 48.57%, suggesting the stock is Neutral, with historical volatility in this time frame at 39.60%.

As of today, YMM’s price is $8.16 -4.78% or -$0.41 from its 5-day moving average. YMM is currently trading -4.34% lower than its 20-day SMA and +7.51% higher than its 100-day SMA. However, the stock’s current price level is +38.54% above the SMA50 and +63.20% above the SMA200.

The stochastic %K and %D were 15.95% and 12.64%, respectively, and the average true range (ATR) was 0.46. With the 14-day stochastic at 28.19% and the average true range at 0.51, the RSI (14) stands at 52.88%. The stock has reached -0.32 on the 9-day MACD Oscillator while the 14-day reading was at -0.41.

Analyst Ratings

Jefferies launched coverage on Full Truck Alliance Co. Ltd. (NYSE: YMM) in its analyst report released on December 01, 2022. The firm assigned the stock a Buy rating.

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