Blue Apron Holdings currently holds roughly 82.16
M in cash with (48.96
M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.53.
The firm shows a Beta (market volatility) of 1.2491, which signifies a somewhat significant risk relative to the market. Let's try to break down what Blue Apron's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Blue Apron will likely underperform. Even though it is essential to pay attention to
Blue Apron Holdings historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Blue Apron Holdings exposes twenty-eight different technical indicators, which can help you to evaluate its performance.
Blue Apron Holdings has an expected return of -0.66%. Please be advised to confirm Blue Apron Holdings
value at risk, as well as the
relationship between the skewness and
day median price to decide if
Blue Apron Holdings performance from the past will be repeated at some point in the near future.
Investing in Blue Apron, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Blue Apron along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Blue Apron's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Blue Apron. Your research has to be compared to or analyzed against Blue Apron's peers to derive any actionable benefits. When done correctly, Blue Apron's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Blue Apron Holdings.
How important is Blue Apron's Liquidity
Blue Apron
financial leverage refers to using borrowed capital as a funding source to finance Blue Apron Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Blue Apron financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Blue Apron's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Blue Apron's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Blue Apron's total debt and its cash.
A Deeper Perspective
Blue Apron Holdings secures Sharpe Ratio (or Efficiency) of -0.091, which signifies that the company had -0.091% of return per unit of risk over the last 3 months. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. Blue Apron Holdings exposes twenty-eight different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to confirm Blue Apron Holdings
risk adjusted performance of
(0.15), and Mean Deviation of 4.97 to double-check the risk estimate we provide.
Will Blue Apron growth be feasible after the rise?
The mean deviation is down to 4.97 as of today. Blue Apron Holdings is displaying above-average volatility over the selected time horizon. Investors should scrutinize Blue Apron Holdings independently to ensure intended market timing strategies are aligned with expectations about Blue Apron volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Blue Apron's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Blue Apron's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Blue Apron Implied Volatility
Blue Apron's implied volatility exposes the market's sentiment of Blue Apron Holdings stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Blue Apron's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Blue Apron stock will not fluctuate a lot when Blue Apron's options are near their expiration.
The Bottom Line
Whereas some other entities in the internet retail industry are either recovering or due for a correction, Blue Apron may not be as strong as the others in terms of longer-term growth potentials. On the whole, as of the 15th of June 2022, our ongoing 90 days 'Buy-vs-Sell' recommendation on the company is
Hold. We believe Blue Apron is currently
undervalued with
below average odds of distress for the next two years.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Blue Apron Holdings. Please refer to our
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