Is Full Truck Alliance (YMM) Headed for a Breakdown?

by Christian Tharp, CMT

Full Truck Alliance Co Ltd (YMM), through its subsidiaries, provides comprehensive services for shippers and truckers through its mobile and website platforms in China. The group derives its revenues principally from shippers’ and truckers’ use of its platforms in connection with freight matching services and value-added services…

 

Full Truck Alliance Co Ltd (YMM) is currently undergoing a cybersecurity review of its Yunmanman and Huochebang apps. In the latest quarter, YMM saw a significant increase in the number of fulfilled orders, up to 78.4% year over year. Going forward, the company is looking to sharpen its technological edge and broaden its logistics network.

The firm’s balance sheet looks solid as its current assets of $4.6 billion are much higher than its current liabilities. In the third quarter, revenue jumped 68.9% year over year to $192.7 million. Next year, sales are expected to rise 84.3%, while earnings are forecasted to surge 1,150%.

However, the stock looks overvalued with a price to sales of 27.3, well above the industry average of 10.9. Its price to cash flow is also very high. YMM has shown mixed performance since the end of August, as shown in the chart below.

Take a look at the 1-year chart of YMM below with added notations…

See chart and continue reading at STOCKNEWS.com

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Good luck!

Christian Tharp, CMT

www.todaysbigstock.com 

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