Does HF Sinclair volatility makes retail investors worry?

DINO Stock  USD 49.78  0.88  1.80%   
HF Sinclair is currently does not generate positive expected returns and assumes 2.6213% risk (volatility on return distribution) over the 90 days horizon. Although many risk-takers are getting more into oil, gas & consumable fuels space, some of us are not very happy with HF Sinclair's current volatility. We will go over odds for HF Sinclair to generate above-average margins in few weeks. HF Sinclair's low volatility may still impact the value of the stock as we estimate it as currently undervalued. The real value, based on our analysis, is getting close to 58.55 per share.
Published over a month ago
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Reviewed by Vlad Skutelnik

HF Sinclair Corp currently holds roughly 1.7 B in cash with 406.68 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 7.85.
Volatility is a rate at which the price of HF Sinclair or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of HF Sinclair may increase or decrease. In other words, similar to HF Sinclair's beta indicator, it measures the risk of HF Sinclair and helps estimate the fluctuations that may happen in a short period of time. So if prices of HF Sinclair fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

How important is HF Sinclair's Liquidity

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

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for HF Sinclair, but it might be worth checking our own buy vs. sell analysis

HF Sinclair Volatility Drivers

HF Sinclair unsystematic risk is unique to HF Sinclair Corp and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in HF Sinclair you can also buy Cosan SA ADR. You can also mitigate this risk by investing in the energy sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing HF Sinclair important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in HF Sinclair income statement and balance sheet. Here are more details about HF Sinclair volatility.