Citi Trends currently holds roughly 101.35
M in cash with 112.27
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 11.39.
Macroaxis provides unbiased investment recommendation on Citi Trends that should be used to complement current
analysts and expert consensus on Citi Trends. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon.
Investing in Citi Trends, 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 Citi Trends 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, anticipate that the market will even out over time. This tendency of Citi Trends' 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 note, it is not enough to conduct a financial or market analysis of a single entity such as Citi Trends. Your research has to be compared to or analyzed against Citi Trends' peers to derive any actionable benefits. When done correctly, Citi Trends' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Citi Trends.
How important is Citi Trends's Liquidity
Citi Trends
financial leverage refers to using borrowed capital as a funding source to finance Citi Trends ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Citi Trends 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 Citi Trends' 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 Citi Trends' 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 Citi Trends's total debt and its cash.
Citi Trends Gross Profit
Citi Trends Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Citi Trends previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Citi Trends Gross Profit growth over the last 10 years. Please check Citi Trends'
gross profit and other
fundamental indicators for more details.
Citi Trends Correlation with Peers
Investors in Citi can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Citi Trends. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Citi Trends and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Citi 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 Citi for more details
A Deeper Perspective
Citi Trends secures Sharpe Ratio (or Efficiency) of -0.0287, which signifies that the company had -0.0287% 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. Citi Trends exposes twenty-eight different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to confirm Citi Trends
mean deviation of 2.61, and Risk Adjusted Performance of
(0.010794) to double-check the risk estimate we provide.
Will Citi Trends continue to go insane?
Latest Jensen Alpha is up to -0.05. Price may slide again. Citi Trends exhibits very low volatility with skewness of -0.69 and kurtosis of 0.44. However, we advise investors to further study Citi Trends 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 Citi Trends' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Citi Trends' 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.
Citi Trends Implied Volatility
Citi Trends' implied volatility exposes the market's sentiment of Citi Trends stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Citi Trends' 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 Citi Trends stock will not fluctuate a lot when Citi Trends' options are near their expiration.
Our Final Perspective on Citi Trends
Whereas some other entities in the apparel retail industry are either recovering or due for a correction, Citi Trends may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Citi Trends 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 Citi Trends.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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 Ellen Johnson do not own shares of Citi Trends. Please refer to our
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