Crown Stock Story

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CRWS
 Stock
  

USD 6.22  0.15  2.35%   

By Raphi Shpitalnik
Macroaxis Story
It seems Crown Crafts will continue to recover much faster as its share price surged up 2.37% today. Crown Crafts current daily volatility is 1.07 percent, with a beta of 0.21 and an alpha of -0.03 over DOW. As many of us are excited about textiles, it is fair to sum up Crown Crafts. I will address the reasons why this entity does not get much respect from retail investors under the current market uncertainty.
Published over two months ago
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Chances of Crown Crafts to fall after the volatility advances

Crown Crafts currently holds roughly 2.05 M in cash with 4.92 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.2.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Crown Crafts has an asset utilization ratio of 159.31 percent. This connotes that the company is making $1.59 for each dollar of assets. An increasing asset utilization means that Crown Crafts is more efficient with each dollar of assets it utilizes for everyday operations.
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.
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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 does Crown utilize 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 8.26 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

We consider Crown Crafts not too volatile. Crown Crafts secures Sharpe Ratio (or Efficiency) of 0.0144, which signifies that the company had 0.0144% of return per unit of risk over the last 3 months. 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 Crown Crafts, which you can use to evaluate the future volatility of the firm. Please confirm Crown Crafts risk adjusted performance of (0.035388), and Mean Deviation of 0.8094 to double-check if the risk estimate we provide is consistent with the expected return of 0.0155%.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our take on today Crown Crafts spike

Crown Crafts total risk alpha is up to 0.0. Crown Crafts exhibits very low volatility with skewness of -0.38 and kurtosis of 1.52. However, we advise investors to further study Crown Crafts 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 Crown Crafts' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Crown Crafts' 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.

Crown Crafts Implied Volatility

Crown Crafts' implied volatility exposes the market's sentiment of Crown Crafts stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Crown Crafts' 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 Crown Crafts stock will not fluctuate a lot when Crown Crafts' options are near their expiration.

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.
With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Crown as the current risk-reward utility is not appealing enough. 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 Crown Crafts.

Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. 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 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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