Core Mark Holding currently holds roughly 11.7
M in cash with 193.1
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.26.
On a scale of 0 to 100, Core Mark holds a
performance score of 6. The firm shows a Beta (market volatility) of 0.0488, which signifies not very significant fluctuations relative to the market. Let's try to break down what Core Mark's beta means in this case. As returns on the market increase, Core Mark returns are expected to increase less than the market. However, during the bear market, the loss on holding Core Mark will be expected to be smaller as well. Although it is extremely important to respect
Core Mark Holding 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
Core Mark Holding technical indicators, you can presently evaluate if the expected return of 0.24% will be sustainable into the future. Please makes use of Core Mark Holding
downside variance, and the
relationship between the
treynor ratio and
kurtosis to make a quick decision on whether Core Mark
price patterns will revert.
How important is Core-Mark Holding's Liquidity
Core-Mark Holding
financial leverage refers to using borrowed capital as a funding source to finance Core Mark Holding ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Core-Mark Holding 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 Core-Mark Holding'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 Core-Mark Holding'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 Core-Mark Holding's total debt and its cash.
Core-Mark Holding Correlation with Peers
Investors in Core-Mark can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Core Mark Holding. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Core-Mark Holding and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Core-Mark 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 Core-Mark for more details
A Deeper Perspective
Core Mark appears to be very steady, given 1 month investment horizon.
Core Mark Holding secures Sharpe Ratio (or Efficiency) of 0.0905, which signifies that the company had 0.0905% 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 Core Mark Holding, which you can use to evaluate future volatility of the firm. Please makes use of Core Mark Holding Mean Deviation of 1.72,
risk adjusted performance of 0.0195, and Downside Deviation of 2.26 to double-check if our risk estimates are consistent with your expectations.
Core Mark implied volatility may change after the surge
Core Mark latest skewness ascents over 0.66. Core Mark Holding currently demonstrates below-average downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of 0.03. However, we advise investors to further question Core Mark Holding 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 Core Mark'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 Core Mark'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.
Our Final Takeaway
Although other entities under the food distribution industry are still a bit expensive, Core Mark may offer a potential longer-term growth to shareholders. To conclude, as of the 1st of March 2021, we believe Core Mark is currently
fairly valued. It barely shadows the market and projects
very small chance of bankruptcy in the next two years. However, our concluding 30 days 'Buy-vs-Sell' recommendation on the firm is
Sell.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
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 Gabriel Shpitalnik do not own shares of Core Mark Holding. Please refer to our
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