CPI Aerostructures Story

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CVU -- USA Stock  

USD 4.01  0.11  2.67%

It appears CPI Aerostructures will continue to recover much faster as its share price surged up 3.72% today. CPI Aerostructures's current daily volatility is 3.72 percent, with a beta of 0.04 and an alpha of 0.49 over DOW. As many investors are getting excited about military industrial, it is fair to review CPI Aerostructures. We will look into some reasons why it is still possible for CPI Aerostructures to maintain above-average margins while minimizing volatility.
Published over three weeks ago
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Should you exit CPI Aerostructures after the newest volatility drop?
CPI Aerostructures has roughly 6.75 M in cash with 2.16 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.56. We provide trade advice to complement the prevailing expert consensus on CPI Aerostructures. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available today.
Investing in CPI Aerostructures, 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 CPI Aerostructures 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 CPI Aerostructures' stock 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 CPI Aerostructures 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 CPI Aerostructures. Your research has to be compared to or analyzed against CPI Aerostructures' peers to derive any actionable benefits. When done correctly, CPI Aerostructures' 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 CPI Aerostructures.

How important is CPI Aerostructures's Liquidity

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

How CPI Aerostructures utilizes its cash?

To perform a cash flow analysis of CPI Aerostructures, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash CPI Aerostructures is receiving and how much cash it distributes out in a given period. The CPI Aerostructures cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. CPI Aerostructures Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. CPI Aerostructures reported Net Cash Flow from Operations of (434,679) in 2020

CPI Aerostructures Correlation with Peers

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

Breaking down CPI Aerostructures Indicators

CPI Aerostructures appears to be risky, given 1 month investment horizon. CPI Aerostructures secures Sharpe Ratio (or Efficiency) of 0.24, which signifies that the company had 0.24% of return per unit of return volatility over the last month. Our approach to foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By reviewing CPI Aerostructures technical indicators you can today evaluate if the expected return of 0.88% is justified by implied risk. Please makes use of CPI Aerostructures Semi Deviation of 3.37, mean deviation of 2.94, and Risk Adjusted Performance of 0.1377 to double-check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will CPI Aerostructures growth be reasonable after the gain?

Newest Sortino Ratio is up to 0.09. Price may drop again. CPI Aerostructures shows above-average downside volatility for the selected time horizon. We advise investors to inspect CPI Aerostructures further and ensure that all market timing and asset allocation strategies are consistent with the estimation of CPI Aerostructures future alpha.

Our Final Perspective on CPI Aerostructures

Whereas other companies under the aerospace & defense industry are still a bit expensive, CPI Aerostructures may offer a potential longer-term growth to private investors. With a relatively neutral outlook on the newest economy, it is better to hold off any trading of CPI Aerostructures 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 CPI Aerostructures.

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 Ellen Johnson do not own shares of CPI Aerostructures. Please refer to our Terms of Use for any information regarding our disclosure principles.

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