Culp Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:3em;'>CUL</div>
CULP -- USA Stock  

USD 12.20  0.50  3.94%

The predictive indicators we use to evaluate Culp help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Culp Inc. We apply different methods to arrive at the intrinsic value of Culp based on widely used predictive technical indicators. While some planning is required to successfully invest in stocks, sometimes taking bold action is just as important. Let's try to recap why this may be the case with Culp. We will evaluate if Culp shares are reasonably priced going into October.
Published over three weeks ago
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Is Culp (NYSE:CULP) gaining more confidence from insiders?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Culp has an asset utilization ratio of 122.42 percent. This suggests that the company is making $1.22 for each dollar of assets. An increasing asset utilization means that Culp Inc is more efficient with each dollar of assets it utilizes for everyday operations. The company has Profit Margin (PM) of (11.19) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of 2.37 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.02.
The successful prediction of Culp stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Culp Inc, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Culp based on Culp hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Culp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Culp's related companies.

Use Technical Analysis to project Culp expected Price

Culp technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Culp technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Culp trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How Culp utilizes its cash?

To perform a cash flow analysis of Culp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Culp is receiving and how much cash it distributes out in a given period. The Culp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Culp Net Cash Flow from Operations is very stable at the moment as compared to the past year. Culp reported last year Net Cash Flow from Operations of 4.97 Million

Breaking down Culp Indicators

The recent price roll up of Culp Inc could raise concerns from insiders as the firm closed today at a share price of 11.51 on 53,460 in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in October. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.43. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Culp partners.

Deferred Revenue Breakdown

Culp Deferred Revenue yearly trend continues to be very stable with very little volatility. Deferred Revenue is likely to grow to about 690 K this year. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Culp Deferred Revenue is very stable at the moment as compared to the past year. Culp reported last year Deferred Revenue of 502,000
2010
2020
2010502,000
2020690,000

Culp implied volatility may change after the roll up

Information ratio is down to 0.14. It may hint at a possible volatility decline. Culp Inc shows above-average downside volatility for the selected time horizon. We advise investors to inspect Culp Inc further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Culp future alpha.

Our Conclusion on Culp

Although some other entities within the textile manufacturing industry are still a little expensive, even after the recent corrections, Culp may offer a potential longer-term growth to insiders. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither acquire new shares of Culp nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been 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 Culp.

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 Achuva Shats do not own shares of Culp Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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