Crown Stock Story

CRWS -  USA Stock  

USD 7.75  0.04  0.51%

It seems Crown Crafts may not have a good chance to recover from the latest fall as its shares fell again. Crown Crafts current daily volatility is 0.93 percent, with a beta of -0.16 and an alpha of 0.1 over DOW. As many retail investors getting excited about latest market fluctuations it is important to sum up Crown Crafts based on its critical indicators. We will cover the possibilities of making Crown Crafts into a steady grower in July.
Published over a week ago
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Is Crown Crafts (NASDAQ:CRWS) a new disruptor?
Crown Crafts currently holds roughly 3.66 M in cash with 9.42 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.37.
The firm shows a Beta (market volatility) of -0.165, which signifies not very significant fluctuations relative to the market. Let's try to break down what Crown's beta means in this case. As returns on the market increase, returns on owning Crown Crafts are expected to decrease at a much lower rate. During the bear market, Crown Crafts is likely to outperform the market. Even though it is essential to pay attention to Crown Crafts historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Crown Crafts exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Crown Crafts has an expected return of -0.0155%. Please be advised to confirm Crown Crafts maximum drawdown, as well as the relationship between the skewness and day typical price to decide if Crown Crafts stock performance from the past will be repeated at some point in the near future.
Investing in Crown Crafts, 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 Crown Crafts 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 Crown Crafts' 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 Crown Crafts 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 Crown Crafts. Your research has to be compared to or analyzed against Crown Crafts' peers to derive any actionable benefits. When done correctly, Crown Crafts' 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 Crown Crafts.

How important is Crown Crafts's Liquidity

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

How Crown utilizes its cash?

To perform a cash flow analysis of Crown Crafts, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Crown Crafts is receiving and how much cash it distributes out in a given period. The Crown Crafts cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Crown Crafts Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Crown Crafts reported last year Net Cash Flow from Operations of 8.74 Million

Crown Crafts Correlation with Peers

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

Another Outlook On Crown Crafts

Crown Crafts secures Sharpe Ratio (or Efficiency) of -0.0168, which signifies that the company had -0.0168% 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. Crown Crafts exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Crown Crafts Risk Adjusted Performance of 0.053, downside deviation of 1.1, and Mean Deviation of 0.7501 to double-check the risk estimate we provide.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our perspective of the latest Crown Crafts fall

Latest Risk Adjusted Performance is up to 0.05. Price may fall again.
As of the 9th of June, Crown Crafts shows the Downside Deviation of 1.1, mean deviation of 0.7501, and Risk Adjusted Performance of 0.053. Crown Crafts technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We are able to interpolate and break down nineteen technical drivers for Crown Crafts, which can be compared to its rivals. Please confirm Crown Crafts coefficient of variation, maximum drawdown, as well as the relationship between the Maximum Drawdown and skewness to decide if Crown Crafts is priced correctly, providing market reflects its regular price of 7.98 per share. Given that Crown Crafts has jensen alpha of 0.0978, we suggest you to validate Crown Crafts's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Crown Crafts

When is the right time to buy or sell Crown Crafts? Buying stocks such as Crown Crafts isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
Taking everything into account, as of the 9th of June 2021, our analysis shows that Crown Crafts moves indifferently to market moves. The enterprise is overvalued and projects low odds of distress for the next 2 years. Our present 90 days buy-hold-sell recommendation on the enterprise is Cautious Hold.

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 Raphi Shpitalnik do not own shares of Crown Crafts. Please refer to our Terms of Use for any information regarding our disclosure principles.

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