Destination appears to be extremely dangerous, given 1 month investment horizon.
Destination XL Group secures Sharpe Ratio (or Efficiency) of 0.0552, which denotes the company had 0.0552% of return per unit of risk over the last month. 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. By reviewing
Destination XL Group technical indicators you can presently evaluate if the expected return of 0.66% is justified by implied risk. Please utilize Destination XL Group
mean deviation of 5.93, and Coefficient Of Variation of
(6,931) to check if our risk estimates are consistent with your expectations.
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 Destination income statement, its balance sheet, and the statement of cash flows. Potential Destination investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Destination investors may use each financial statement separately, they are all related. The changes in Destination's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Destination'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 Destination
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Destination performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Destination shares is the value that is considered the true value of the share. If
the intrinsic value of Destination 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 Destination. Please read more on our
fundamental analysis page.
How effective is Destination in utilizing its assets?
Destination XL Group reports assets on its Balance Sheet. It represents the amount of Destination resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Destination aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Specialty Retail space. To get a better handle on how balance sheet or income statements item affect Destination volatility, please check the breakdown of all its
fundamentals.
Are Destination Earnings Expected to grow?
The
future earnings power of Destination involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Destination factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Destination
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Destination
expected earnings.
Destination Gross Profit
Destination Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Destination previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Destination Gross Profit growth over the last 10 years. Please check Destination's
gross profit and other
fundamental indicators for more details.
An Additional Perspective On Destination XL Group
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Destination is not uncomon. Institutional investors typically avoid acquiring a high percentage of Destination 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 Destination is distributed among investors.
Ownership Allocation
Destination XL Group retains a total of 51.08 Million outstanding shares. Over half of Destination XL Group outstanding shares are owned by
other corporate entities. These other corporate entities are typically referred to corporate investors that obtain positions in a given instrument to benefit from reduced trade commissions. Consequently, these
institutions are subject to different rules and regulation than regular investors in Destination. Please watch out for any change in the
institutional holdings of Destination XL Group as this could mean something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently
losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.
| Retail Investors14.32% | Insiders15.84% | Institutions69.84% |
| Retail Investors | 14.32 |
| Insiders | 15.84 |
| Institutions | 69.84 |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Destination has an asset utilization ratio of 460.16 percent. This indicates that the company is making $4.6 for each dollar of assets. An increasing asset utilization means that Destination XL Group is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets140.5 M | Assets Non Current209.6 M | | |
| Current Assets | 140.54 Million | 35.79 |
| Assets Non Current | 209.6 Million | 53.38 |
| Goodwill | 2.01 Million | 0.51 |
| Tax Assets | 40.54 Million | 10.32 |
Will Destination latest surge continue?
Treynor ratio is down to 8.86. It may indicate a possible volatility dip. Destination XL Group is displaying above-average volatility over the selected time horizon. Investors should scrutinize Destination XL Group independently to ensure intended market timing strategies are aligned with expectations about Destination volatility. Destination XL Group is a potential penny stock. Although Destination may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Destination XL Group. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
Our Conclusion on Destination
Although other entities under the apparel retail industry are still a bit expensive, Destination may offer a potential longer-term growth to shareholders. Taking everything into account, as of the 27th of August 2020, our analysis shows that Destination hyperactively responds to market trends. The firm is
undervalued and projects
below average probability of bankruptcy for the next 2 years. However, our concluding 30 days 'Buy-Sell' recommendation on the firm is
Strong Sell.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of Destination XL Group. Please refer to our
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