CUB Cubic stock Story

CUB -  USA Stock  

USD 75.00  0.05  0.07%

Cubic Earnings before Tax are projected to decrease significantly based on the last few years of reporting. The past year's Earnings before Tax were at 54.66 Million. The current year Working Capital is expected to grow to about 246.6 M, whereas Net Income Per Employee is forecasted to decline to 7,996. The aim of this article is to forecast a future value of Cubic using technical analysis. What exactly are Cubic investors should expect in December?
Published over six months ago
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Are Cubic (NYSE:CUB) investors starting to hold back?
Cubic has a beta of 0.6151. Let's try to break down what Cubic's beta means in this case. Cubic returns are very sensitive to returns on the market. As the market goes up or down, Cubic is expected to follow. The beta indicator helps investors understand whether Cubic moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Cubic deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Cubic. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Cubic

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Cubic's 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 Cubic 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 Cubic. Your research has to be compared to or analyzed against Cubic's peers to derive any actionable benefits. When done correctly, Cubic'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 Cubic.

How important is Cubic's Liquidity

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

How CUB Cubic utilizes its cash?

To perform a cash flow analysis of Cubic, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Cubic is receiving and how much cash it distributes out in a given period. The Cubic cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Cubic Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (4.39 Million)

Bona fide gift to Janice Hamby of 335 shares of Cubic Corp subject to Section 16

Legal trades by Cubic insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Cubic insider trading alert for gift of common stock by Janice Hamby, the corporate stakeholder, on 5th of May 2021. This event was filed by Cubic Corp with SEC on 2021-05-05. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Detailed Outlook On Cubic

The current price rise of Cubic could raise concerns from investors as the firm it trading at a share price of 65.58 on 356,455 in volume. The company management teams may have good odds in positioning the firm resources to exploit market volatility in December. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.88. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Cubic partners.

Margin Breakdown

Operating Margin4.99
EBITDA Margin0.0805
Gross Margin0.33
Profit Margin0.0288

Will price continue to rise in December 2020?

Sortino ratio is down to 0.23. It may suggest a possible volatility slip. Cubic currently demonstrates below-verage downside deviation. It has Information Ratio of 0.11 and Jensen Alpha of 0.58. However, we do advice investors to further question Cubic expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on Cubic

Whereas some firms under the aerospace & defense industry are still a bit expensive, Cubic may offer a potential longer-term growth to investors. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to exit some or all of your Cubic holdings as it seems the potential growth was already fully factored into the current price. 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 Cubic.

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 Gabriel Shpitalnik do not own shares of Cubic. Please refer to our Terms of Use for any information regarding our disclosure principles.

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