Diversey Holdings is UNDERVALUED at 17.94 per share with modest projections ahead.
We consider Diversey Holdings very steady.
Diversey Holdings secures Sharpe Ratio (or Efficiency) of 0.0033, which denotes the company had 0.0033% of return per unit of risk over the last 3 months. Our standpoint towards predicting the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-one
technical indicators for Diversey Holdings, which you can use to evaluate the future volatility of the firm. Please confirm Diversey Holdings
mean deviation of 1.63, and Coefficient Of Variation of
(1,601) to check if the risk estimate we provide is consistent with the expected return of 0.0065%.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Diversey Holdings income statement, its balance sheet, and the statement of cash flows. Potential Diversey Holdings investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Diversey Holdings investors may use each financial statement separately, they are all related. The changes in Diversey Holdings's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Diversey Holdings's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Diversey Holdings
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Diversey Holdings performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Diversey Holdings shares is the value that is considered the true value of the share. If
the intrinsic value of Diversey is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Diversey Holdings. Please read more on our
fundamental analysis page.
How important is Diversey Holdings's Liquidity
Diversey Holdings
financial leverage refers to using borrowed capital as a funding source to finance Diversey Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Diversey Holdings 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 Diversey Holdings' 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 Diversey Holdings' 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 Diversey Holdings's total debt and its cash.
What is driving Diversey Holdings Investor Appetite?
Institutional investors typically avoid acquiring a high percentage of Diversey Holdings stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Diversey is distributed among investors.
Ownership Allocation
The
market capitalization of Diversey Holdings is $4.47 Billion. The majority of Diversey Holdings
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Diversey Holdings to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Diversey Holdings. Please pay attention to any change in the institutional holdings of Diversey Holdings as this could imply that something significant has changed or about to change at the company. Note, that even with negative
profits, if the true value of the firm is larger than the current market value, you may still be able to generate positive returns on investment in this company.
| Retail Investors20.75% | | Institutions77.75% |
| Retail Investors | 20.75 |
| Insiders | 1.5 |
| Institutions | 77.75 |
Asset Utilization
One of the ways to look at asset utilization of Diversey is to check how much profit was generated for every dollar of assets it reports. Diversey Holdings utilizes its assets almost 2.08 percent, getting $0.0208 for each dollar of assets held by the firm. A positive asset utilization denotes the company is slightly more effective with each dollar of assets it shows. Put another way, asset utilization of Diversey Holdings shows how effective it operates for each dollar spent on its assets.
| Assets Non Current3.7 B | Goodwill3 B |
| Current Assets | 1.04 Billion | 13.44 |
| Assets Non Current | 3.67 Billion | 47.35 |
| Goodwill | 3.04 Billion | 39.21 |
Possible September come-back of Diversey?
Current potential upside is at 2.77. Diversey Holdings exhibits very low volatility with skewness of -0.27 and kurtosis of 0.34. However, we advise investors to further study Diversey Holdings 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 Diversey Holdings' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Diversey Holdings' 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.
Our Final Perspective on Diversey Holdings
When is the right time to buy or sell Diversey Holdings? Buying stocks such as Diversey Holdings isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
With a relatively neutral outlook on the current economy, it is better to hold off any trading of Diversey 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 Diversey Holdings.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, 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 Vlad Skutelnik do not own shares of Diversey Holdings. Please refer to our
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