Core Mark Story

CORE -- USA Stock

USD 43.19 0.85 2.01%

Macroaxis Story

It looks as if Core Mark will continue to recover much faster as its share price surged up 9.48% today. This firm current daily volatility is 2.65 percent, with a beta of 0.05 and an alpha of 0.03 over DOW. As many millenniums are trying to avoid wholesale, it makes sense to digest Core Mark Holding a little further and try to understand its current market patterns. We will analyze why Core Mark investors may still consider a stake in the business.

Published over a month ago

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Is Core Mark (NASDAQ:CORE) a new disruptor?

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.

Is Core Mark (NASDAQ:CORE) a new disruptor?

Investing in Core Mark, 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 Core Mark 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 Core Mark's stock 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 Core Mark 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 Core Mark. Your research has to be compared to or analyzed against Core Mark's peers to derive any actionable benefits. When done correctly, Core Mark'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 Core Mark Holding.

How important is Core Mark's Liquidity

Core Mark 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 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 Core Mark's total debt and its cash.

How Core Mark utilizes its cash?

To perform a cash flow analysis of Core Mark, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Core Mark is receiving and how much cash it distributes out in a given period. The Core Mark cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Core Mark Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 147.8 Million

Core Mark 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 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.

	DIT	HFFG	IVFH	ANDE	CHEF
DIT		-0.29	0.56	0.6	0.69	DIT
HFFG	-0.29		-0.29	-0.16	-0.09	HFFG
IVFH	0.56	-0.29		0.69	0.78	IVFH
ANDE	0.6	-0.16	0.69		0.85	ANDE
CHEF	0.69	-0.09	0.78	0.85		CHEF
	DIT	HFFG	IVFH	ANDE	CHEF

Click cells to compare fundamentals

Check Volatility

Backtest Portfolio

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.

About Contributor

Gabriel Shpitalnik is a Member of Macroaxs 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 Terms of Use for any information regarding our disclosure principles.

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Core Mark Story

USD 43.19 0.85 2.01%

How important is Core Mark's Liquidity

How Core Mark utilizes its cash?

Core Mark Correlation with Peers

A Deeper Perspective

Core Mark implied volatility may change after the surge

Our Final Takeaway

About Contributor

Would you like to provide feedback on the content of this article?

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