Buckle Story

<div class='circular--portrait' style='background:#006400;color: #FFE4E1;font-size:3em;'>BKE</div>
BKE -- USA Stock  

USD 21.72  0.21  0.96%

It looks as if Buckle will continue to recover much faster as its share price surged up 18.81% today. Buckle Inc's current daily volatility is 4.5 percent, with a beta of 0.21 and an alpha of 0.18 over DOW. As many investors are getting excited about current market swings, it is fair to digest Buckle Inc. We will analyze why it could be a much better year for Buckle shareholders.
Published over three weeks ago
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Is Buckle (NYSE:BKE) way too risky for millennials?
Buckle Inc has roughly 202.7 M in cash with 73.09 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.16. This firm has 354.46 M in debt with debt to equity (D/E) ratio of 0.94, which is OK given its current industry classification. The company has a current ratio of 2.4, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
Investing in Buckle, 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 Buckle 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.

How important is Buckle's Liquidity

Buckle financial leverage refers to using borrowed capital as a funding source to finance Buckle Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Buckle 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 Buckle's total debt and its cash.

How Buckle utilizes its cash?

To perform a cash flow analysis of Buckle, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Buckle is receiving and how much cash it distributes out in a given period. The Buckle cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Buckle Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 130.66 Million

Buckle Correlation with Peers

Investors in Buckle can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Buckle Inc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Buckle and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Buckle 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 Buckle for more details

An Additional Perspective On Buckle Inc

Buckle appears to be slightly risky, given 1 month investment horizon. Buckle Inc secures Sharpe Ratio (or Efficiency) of 0.11, which signifies that the company had 0.11% of return per unit of standard deviation over the last month. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing Buckle Inc technical indicators you can presently evaluate if the expected return of 0.52% is justified by implied risk. Please makes use of Buckle Inc risk adjusted performance of 0.0904, and Mean Deviation of 3.15 to double-check if our risk estimates are consistent with your expectations.
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Can Buckle build up on the latest surge?

Total Risk Alpha just dropped to -0.23, may indicate upcoming price depreciation. Buckle Inc shows above-average downside volatility for the selected time horizon. We advise investors to inspect Buckle Inc further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Buckle future alpha.

The Bottom Line

Although some firms within the apparel retail industry are still a little expensive, even after the recent corrections, Buckle may offer a potential longer-term growth to shareholders. While some shareholders may not share our view we believe it may be a good time to exit Buckle as the risk-reward trade off is not appealing enough to hold a position. 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 Buckle.

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 Achuva Shats do not own shares of Buckle Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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