Bgsf Inc currently holds roughly 2.23
M in cash with 22.28
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.45.
On a scale of 0 to 100, Bgsf holds a
performance score of 6. The firm shows a Beta (market volatility) of 1.5716, which signifies a somewhat significant risk relative to the market. Let's try to break down what Bgsf'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, Bgsf will likely underperform. Although it is extremely important to respect
Bgsf Inc historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By analyzing
Bgsf Inc technical indicators, you can presently evaluate if the expected return of 0.24% will be sustainable into the future. Please makes use of Bgsf Inc
downside variance, and the
relationship between the
treynor ratio and
kurtosis to make a quick decision on whether Bgsf
price patterns will revert.
Investing in BG Staffing, 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 BG Staffing 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 BG Staffing'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 BG Staffing. Your research has to be compared to or analyzed against BG Staffing's peers to derive any actionable benefits. When done correctly, BG Staffing'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 BG Staffing.
How important is BG Staffing's Liquidity
BG Staffing
financial leverage refers to using borrowed capital as a funding source to finance BG Staffing ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. BG Staffing 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 BG Staffing'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 BG Staffing'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 BG Staffing's total debt and its cash.
BG Staffing Gross Profit
BG Staffing Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing BG Staffing previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show BG Staffing Gross Profit growth over the last 10 years. Please check BG Staffing's
gross profit and other
fundamental indicators for more details.
BG Staffing Correlation with Peers
Investors in BGSF can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in BG Staffing. Diversification will allow for the same portfolio return with reduced risk. The correlation table of BG Staffing and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities BGSF is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of BGSF for more details
Another Deeper Perspective
Bgsf appears to be not too volatile, given 1 month investment horizon.
Bgsf Inc secures Sharpe Ratio (or Efficiency) of 0.0846, which signifies that the company had 0.0846% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for Bgsf Inc, which you can use to evaluate future volatility of the firm. Please makes use of Bgsf Inc Mean Deviation of 2.3,
risk adjusted performance of 0.0831, and Downside Deviation of 2.55 to double-check if our risk estimates are consistent with your expectations.
Our take on today Bgsf surge
The market risk adjusted performance is down to 0.18 as of today. Bgsf Inc currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.09. However, we advise investors to further question Bgsf Inc expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bgsf'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 Bgsf'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.
The Bottom Line
Although other entities within the staffing & employment services industry are still a little expensive, even after the recent corrections, Bgsf may offer a potential longer-term growth to shareholders. All things considered, as of the 11th of March 2021, our primary 30 days buy-hold-sell recommendation on the firm is
Buy. We believe Bgsf is currently
fairly valued with
low probability of distress for the next two years.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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 Ellen Johnson do not own shares of BG Staffing. Please refer to our
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