By analyzing existing basic indicators between Astronics and Ehang, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Ehang with a short position in Astronics. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Astronics has an asset utilization ratio of 107.79 percent. This suggests that the company is making $1.08 for each dollar of assets. An increasing asset utilization means that Astronics is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Astronics or Novocure is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Astronics's Liquidity
Astronics
financial leverage refers to using borrowed capital as a funding source to finance Astronics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Astronics 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 Astronics' 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 Astronics' 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 Astronics's total debt and its cash.
Correlation Between Astronics and Novocure
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Astronics together with similar or unrelated positions with a negative correlation. For example, you can also add Novocure to your portfolio. If Novocure is not perfectly correlated to Astronics it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Astronics, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Astronics and Novocure in your portfolio? Please note if you are using this as a pair-trade strategy between Astronics and Novocure, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between ATRO and NVCR for more information.
A Deeper Perspective
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Astronics revenue. Based on the latest financial disclosure, Astronics reported 656.71
M of revenue. This is 81.23% lower than that of the Industrials sector and 94.5% lower than that of the
Aerospace & Defense industry. The revenue for all United States stocks is 93.04% higher than that of Astronics. As for Ehang Holdings we see revenue of 106.57
M, which is 99.11% lower than that of the Aerospace & Defense
| Astronics | 656.71 Million |
| Sector | 3.5 Billion |
| Ehang | 106.57 Million |
Are Astronics technical indicators showing a collapse?
The mean deviation is down to 2.76 as of today. Astronics exhibits very low volatility with skewness of 0.06 and kurtosis of -0.46. However, we advise investors to further study Astronics technical indicators to make sure all market info is available and is reliable.
Our Conclusion on Astronics
Whereas some other firms in the aerospace & defense industry are either recovering or due for a correction, Astronics may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Astronics valuation and our trade advice on Astronics is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Astronics.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Astronics. Please refer to our
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