Build Story

<div class='circular--portrait' style='background:#169D0B;color: #E6E6FA;font-size:4em;'>BA</div>
BBW -- USA Stock  

USD 3.13  0.10  3.10%

As many rational traders are trying to avoid consumer cyclical space, it makes sense to focus on Build A Bear a little further and understand how it stands against Acorn International and other similar entities. We are going to recap some of the competitive aspects of both Build and Acorn.
Published over two weeks ago
View all stories for Build A | View All Stories
What should I drop first Build (NYSE:BBW) or Acorn International?
By analyzing existing fundamental indicators between Build A and Acorn, 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 Acorn with a short position in Build A. 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. Build A has an asset utilization ratio of 141.0 percent. This indicates that the company is making $1.41 for each dollar of assets. An increasing asset utilization means that Build A Bear 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 companies, such as Build or Acorn is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Build A's Liquidity

Build A financial leverage refers to using borrowed capital as a funding source to finance Build A Bear ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Build A 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. Please check the breakdown between Build A's total debt and its cash.

Correlation Between Build and Acorn International

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 Build A together with similar or unrelated positions with a negative correlation. For example, you can also add Acorn International to your portfolio. If Acorn International is not perfectly correlated to Build A 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 Build A for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between BBW and ATV for more information.

Note

Are you currently holding both Build A and Acorn International in your portfolio? Please note if you are using this as a pair-trade strategy between Build A and Acorn International, 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.

Is Build A valued fairly by the market?

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

Now, let's check Build A revenue. Based on the latest financial disclosure, Build A Bear reported 300.8 M of revenue. This is 95.78% lower than that of the Consumer Cyclical sector and 97.87% lower than that of the Specialty Retail industry. The revenue for all United States stocks is 96.81% higher than that of Build A. As for Acorn International we see revenue of 36.86 M, which is 99.74% lower than that of the Specialty Retail

Sector
7.1 B
BBW300.8 Million4.03
Sector7.13 Billion95.48
ATV36.86 Million0.49

Our take on today Build A climb

Latest standard deviation is at 5.38. Build A Bear exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Build A Bear individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Build A future systematic risk.

Our Takeaway on Build A Investment

While some firms under the specialty retail industry are still a bit expensive, Build A may offer a potential longer-term growth to sophisticated investors. While some sophisticated investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 Build A.

About Contributor

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 Ellen Johnson do not own shares of Build A Bear. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com