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DTEA -- USA Stock  

USD 2.84  0.01  0.35%

It looks like Farmmi Inc will continue to recover faster as its price went down 9.09% today to DAVIDsTEA's 4.95%. While many traders are getting carried away by overanalyzing competition within consumer defensive space, it is quite reasonable to go over both, DAVIDsTEA and Farmmi Inc as potential short-term investments. We are going to analyze some of the competitive aspects of both DAVIDsTEA and Farmmi.
Published over a month ago
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What should I take in Farmmi (NASDAQ:FAMI) or DAVIDsTEA (NASDAQ:DTEA)?
By analyzing existing fundamental indicators between DAVIDsTEA and Farmmi, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Farmmi with a short position in DAVIDsTEA. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. DAVIDsTEA has an asset utilization ratio of 102.27 percent. This suggests that the company is making $1.02 for each dollar of assets. An increasing asset utilization means that DAVIDsTEA is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as DAVIDsTEA or Farmer is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is DAVIDsTEA's Liquidity

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

Correlation Between DAVIDsTEA and Farmer Brothers

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding DAVIDsTEA together with similar or unrelated positions with a negative correlation. For example, you can also add Farmer Brothers to your portfolio. If Farmer Brothers is not perfectly correlated to DAVIDsTEA it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When DAVIDsTEA for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between DTEA and FARM for more information.

Is DAVIDsTEA valued fairly by the market?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check DAVIDsTEA revenue. Based on the latest financial disclosure, DAVIDsTEA reported 162.58 M of revenue. This is 98.91% lower than that of the Consumer Defensive sector and 98.05% lower than that of the Packaged Foods industry. The revenue for all United States stocks is 98.28% higher than that of DAVIDsTEA. As for Farmmi Inc we see revenue of 30.03 M, which is 99.64% lower than that of the Packaged Foods

8.3 B
DTEA162.58 Million1.91
Sector8.32 Billion97.74
FAMI30.03 Million0.35

A growth case for DAVIDsTEA

The semi variance is down to 5.18 as of today. As of the 15th of December 2020, DAVIDsTEA shows the Downside Deviation of 3.12, mean deviation of 3.39, and Market Risk Adjusted Performance of (17.18). DAVIDsTEA technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the entity's future prices. Put another way, you can use this information to find out if the entity will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to break down nineteen technical drivers for DAVIDsTEA, which can be compared to its rivals. Please confirm DAVIDsTEA treynor ratio, downside variance, kurtosis, as well as the relationship between the value at risk and expected short fall to decide if DAVIDsTEA is priced adequately, providing market reflects its regular price of 1.73 per share. Please also check DAVIDsTEA total risk alpha, which is currently at 0.5332 to verify the company can sustain itself in the future.

Our Final Perspective on DAVIDsTEA

Whereas many other companies in the packaged foods industry are either recovering or due for a correction, DAVIDsTEA may not be performing as strong as the other in terms of long-term growth potentials. Taking everything into account, as of the 15th of December 2020, we believe that at this point, DAVIDsTEA is dangerous with below average probability of bankruptcy within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our primary 30 days buy vs. sell advice on the company is Strong Sell.

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

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