Destination Story

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DXLG -- USA Stock  

USD 1.50  0.05  3.23%

Today we will digest Destination. We will evaluate why we are still confident in anticipation of a recovery. Destination XL Group is currently traded for 0.79. The entity has historical hype elasticity of -0.05. The average price elasticity to hype of competition is about -0.59. The firm is expected to decline in value after the next press release, with the price expected to drop to 0.74. The average volatility of headline impact on the company stock price is huge, making predictions on the news or social media along less reliable. The price decrease on the next news is expected to be -6.33%, whereas the daily expected return is currently at 2.35 percent. Given the investment horizon of 30 days the next expected announcement will be in about 5 days.
Published over a month ago
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Continue to hold Destination (OTC:DXLG)?
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 385.12 percent. This indicates that the company is making $3.85 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.
The company has Profit Margin (PM) of (16.29) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (10.61) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.11.
The successful prediction of Destination stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Destination XL Group, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Destination based on Destination hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Destination's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Destination's related companies.

Use Technical Analysis to project Destination expected Price

Destination technical otc stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Destination technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Destination trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How Destination utilizes its cash?

To perform a cash flow analysis of Destination, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Destination is receiving and how much cash it distributes out in a given period. The Destination cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Destination Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (1.23 Million)

An Additional Perspective On Destination XL Group

The company reported the previous year's revenue of 350.08 M. Net Loss for the year was (57.02 M) with profit before overhead, payroll, taxes, and interest of 204.2 M.

Cost of Revenue Breakdown

Destination Cost of Revenue is increasing over the years with slightly volatile fluctuation. Ongoing Cost of Revenue is projected to grow to about 253.8 M this year. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Destination Cost of Revenue is projected to increase significantly based on the last few years of reporting. The past year's Cost of Revenue was at 224.01 Million
2010
2014
2020
2021
2010210.14 Million
2014269.84 Million
2020224.01 Million
2021253.75 Million

Another 3 percent surge for Destination

The coefficient of variation is down to 525.8 as of today.
As of the 18th of March 2021, Destination shows the Downside Deviation of 7.52, coefficient of variation of 525.8, and Mean Deviation of 5.67. Destination XL Group 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 break down and interpolate nineteen technical drivers for Destination XL Group, which can be compared to its rivals. Please confirm Destination XL Group variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to decide if Destination XL Group is priced favorably, providing market reflects its regular price of 0.79 per share. As Destination XL Group is a penny stock we also recommend to verify its total risk alpha numbers.

Our Final Take On Destination

Although some firms within the apparel retail industry are still a little expensive, even after the recent corrections, Destination may offer a potential longer-term growth to shareholders. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither pick up nor exit any shares of Destination at this time. The Destination XL Group 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 Destination.

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 Achuva Shats do not own shares of Destination XL Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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