Davidstea currently holds 578
K in liabilities with Debt to Equity (D/E) ratio of 3.8, implying Davidstea greatly relies on financing operations through barrowing. The entity has a current ratio of 0.7, indicating that it has a negative working capital and may not be able to pay financial obligations when due. About
46.0% of the company shares are held by company insiders. Davidstea has price-to-book (P/B) ratio of 1.75. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity has Price/Earnings To Growth (PEG) ratio of 1.34. The firm recorded a loss per share of
0.21. Davidstea had not issued any dividends in recent years.
Davidstea financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Davidstea, including all of Davidstea's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Davidstea assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Davidstea debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
Watch out for price decline
Please consider monitoring Davidstea on a daily basis if you are holding a position in it. Davidstea is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Davidstea stock to be traded above the $1 level to remain listed. If Davidstea stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
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. Financial leverage can amplify the potential profits to Davidstea's 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 Davidstea's 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 Davidstea's total debt and its cash.
What is driving Davidstea Investor Appetite?
The firm reported the previous year's revenue of 112.69
M. Net Loss for the year was (6.92
M) with profit before overhead, payroll, taxes, and interest of 49.73
M.
Asset Breakdown
| Total Assets | 84.37 Million |
| Current Assets | 59.42 Million |
| Assets Non Current | 24.95 Million |
| Goodwill | 2.95 Million |
| Tax Assets | 2.17 Million |
Davidstea bad events are not so bad
The mean deviation is down to 2.59 as of today.
As of the 13th of September 2021, Davidstea shows the
mean deviation of 2.59, and Coefficient Of Variation of
(710.82). Davidstea
technical analysis allows you to utilize
historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We were able to analyze and collect data for 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 favorably, providing market reflects its regular price of 3.39 per share. Given that Davidstea has
jensen alpha of
(0.48), we urge you to verify Davidstea's prevailing market performance to make sure the company can sustain itself at a future point.
The Bottom Line
Whereas other companies in the packaged foods industry are either recovering or due for a correction, Davidstea may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither acquire nor drop any shares of Davidstea at this time. The Davidstea risk-reward trade off is not appealing enough to do any trading. 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 Davidstea.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Davidstea. Please refer to our
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