The Futility of OneConnect Financial Technology Co. Ltd. (NYSE:OCFT)’s Fundamentals

OneConnect Financial Technology Co. Ltd. (NYSE:OCFT) stock’s Relative Strength Index (RSI) is 55.73, with weekly volatility at 6.43% and ATR at 1.81. The OCFT stock’s 52-week price range has touched low of $9.02 and a $28.80 high. Its shares traded higher over the last trading session, gaining 2.88% on 07/30/20. The shares fell to a low of $22.6001 before closing at $23.20. Intraday shares traded counted 0.2 million, which was 67.11% higher than its 30-day average trading volume of 606.27K. OCFT’s previous close was $22.55 while the outstanding shares total 365.77M.

Investors have identified the Software – Application company OneConnect Financial Technology Co. Ltd. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $9.31 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

OneConnect Financial Technology Co. Ltd. (OCFT) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For OCFT, the company has in raw cash 572.37 million on their books with 341.32 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 946302000 million total, with 566614000 million as their total liabilities.

OCFT were able to record -84.33 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 69.49 million. In cash movements, the company had a total of -84.33 million as operating cash flow.

Potential earnings growth for OneConnect Financial Technology Co. Ltd. (OCFT)

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 54.3 million trying to sell their products during the last quarter, with the result yielding a gross income of 28.92 million. This allows shareholders to hold on to 365.77M with the revenue now reading -0.17 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-0.20 cents a share).

Having a look at the company’s valuation, the company is expected to record -0.75 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on OCFT sounds very interesting.

Is the stock of OCFT attractive?

In the last 6 months, insiders have changed their ownership in shares of company stock by 0.27%.

4 out of 6 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on OneConnect Financial Technology Co. Ltd.. 0 analysts has assigned a Sell rating on the OCFT stock. The 12-month mean consensus price target for the company’s shares has been set at $18.02.