Is Circor International (NYSE:CIR) ripping up retail investors?

Circor International Quick Ratio is relatively stable at the moment as compared to the past year. Circor International reported last year Quick Ratio of 0.38. As of 03/04/2021, Asset Turnover is likely to grow to 0.67, while Revenue Per Employee is likely to drop slightly above 103.4 K. While some baby boomers are getting worried about industrials space, it is reasonable to sum up Circor International. We will analyze why it could be a much better year for Circor International shareholders. Here I will also expose some primary fundamental factors affecting Circor International's services, and outline how it will impact the outlook for investors this year.
Published over a year ago
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Reviewed by Rifka Kats

The company reported the last year's revenue of 807.56 M. Reported Net Loss for the year was (134.07 M) with profit before taxes, overhead, and interest of 307.99 M. About 99.0% of the company shares are held by institutions such as insurance companies. The book value of Circor International was currently reported as 11.04. Circor International recorded a loss per share of 8.52. The entity last dividend was issued on the 27th of November 2017. The firm had a split on the 15th of August 1997.
The performance of CIRCOR International in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence CIRCOR International's stock prices. When investing in CIRCOR International, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, CIRCOR Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as CIRCOR International carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

How important is CIRCOR International's Liquidity

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

Breaking down the case for CIRCOR International

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Circor International has an asset utilization ratio of 120.55 percent. This connotes that the company is making $1.21 for each dollar of assets. An increasing asset utilization means that Circor International is more efficient with each dollar of assets it utilizes for everyday operations.

Over 3 percent fall for Circor International. What does it mean for retail investors?

Circor International latest downside deviation advances over 3.29. Circor International shows above-average downside volatility for the selected time horizon. We advise investors to inspect Circor International further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Circor International future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Circor International'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 Circor International'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

While other companies in the specialty industrial machinery industry are either recovering or due for a correction, Circor may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 4th of March 2021, our present 30 days buy-hold-sell recommendation on the enterprise is Hold. We believe Circor International is currently overvalued with close to average odds of distress for the next two years.

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Editorial Staff

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 CIRCOR International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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