Circor Stock Story

CIR
 Stock
  

USD 17.14  0.25  1.44%   

It seems Circor International may not have a good chance to recover from the latest fall as its shares fell again. The firm current daily volatility is 3.45 percent, with a beta of 1.51 and an alpha of -0.32 over DOW. As many millenniums are trying to avoid the latest volatility, we are going to sum up Circor International a little further to understand its historical price patterns. We will evaluate why recent Circor International price moves suggest a bounce in July.
Published over two months ago
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Is Circor International (NYSE:CIR) way too risky for millennials?

Circor International has roughly 72.51 M in cash with 28.31 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.58. Circor International has 513.69 M in debt with debt to equity (D/E) ratio of 2.78, meaning that the firm heavily relies on borrowing funds for operations. The entity has a current ratio of 2.27, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Debt can assist Circor International until it has trouble settling it off, either with new capital or with free cash flow. So, Circor International's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Circor International sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Circor to invest in growth at high rates of return. When we think about Circor International's use of debt, we should always consider it together with cash and equity.
Investing in Circor International, 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 Circor International 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, frequently view the market will even out over time. This tendency of Circor International'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 use the tools below to analyze the current value of Circor International in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Circor International. Your research has to be compared to or analyzed against Circor International's peers to derive any actionable benefits. When done correctly, Circor International's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Circor International.

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. Please check the breakdown between Circor International's total debt and its cash.

How does Circor utilize its cash?

To perform a cash flow analysis of Circor International, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Circor International is receiving and how much cash it distributes out in a given period. The Circor International cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Circor International Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Circor International reported last year Net Cash Flow from Operations of 10.45 Million

Circor International Correlation with Peers

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

Breaking down the case for Circor International

Circor International secures Sharpe Ratio (or Efficiency) of -0.0742, which signifies that the company had -0.0742% of return per unit of risk over the last 3 months. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Circor International exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Circor International mean deviation of 2.4, and Risk Adjusted Performance of (0.14) to double-check the risk estimate we provide.
HURC
CVV
CYD
DCI
CW
HURC
0.00.770.380.68
HURC
CVV
0.00.20.070.34
CVV
CYD
0.770.20.660.79
CYD
DCI
0.380.070.660.58
DCI
CW
0.680.340.790.58
CW
HURC
CVV
CYD
DCI
CW
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Circor retail investors exit after the fall?

The mean deviation is down to 2.4 as of today. Circor International exhibits very low volatility with skewness of 1.87 and kurtosis of 8.98. However, we advise investors to further study Circor International technical indicators to make sure all market info is available and is reliable. 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.

Circor International Implied Volatility

Circor International's implied volatility exposes the market's sentiment of Circor International stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Circor International's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Circor International stock will not fluctuate a lot when Circor International's options are near their expiration.

Our Final Take On Circor International

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. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither acquire nor short any shares of Circor International at this time. The Circor International risk-reward trade off 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 Circor International.

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 Gabriel Shpitalnik 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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