Eaton Story

<div class='circular--portrait' style='background:#800000;color: #F8F8FF;font-size:4em;'>EV</div>
EV -- USA Stock  

USD 62.06  0.09  0.15%

It appears Eaton Vance will continue to recover much faster as its share price surged up 51.02% today. The entity's current daily volatility is 6.64 percent, with a beta of -0.32 and an alpha of 0.1 over DOW. While some millenniums are indifferent towards trading, it makes sense to focus on Eaton Vance. We will look into some reasons why it is still possible for Eaton Vance to maintain above-average margins while minimizing volatility.
Published over two weeks ago
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Is Eaton Vance (NYSE:EV) way too risky for millennials?
Eaton Vance reports roughly 1.03 B in cash with 386.7 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 9.42. The company reports 927.68 M of total liabilities with total debt to equity ratio (D/E) of 0.64, which is normal for its line of buisiness. Eaton Vance has a current ratio of 8.88, indicating that it is in good position to pay out its debt commitments in time.
Investing in Eaton Vance, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Eaton Vance along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Eaton Vance's Liquidity

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

How Eaton utilizes its cash?

To perform a cash flow analysis of Eaton Vance, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Eaton Vance is receiving and how much cash it distributes out in a given period. The Eaton Vance cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Eaton Vance Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Eaton Vance reported Net Cash Flow from Operations of 588.59 Million in 2019

Eaton Vance Correlation with Peers

Investors in Eaton can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Eaton Vance. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Eaton Vance and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Eaton is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Eaton for more details

Breaking it down a bit more

Eaton Vance appears to be not too volatile, given 1 month investment horizon. Eaton Vance secures Sharpe Ratio (or Efficiency) of 0.14, which denotes the company had 0.14% 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 Eaton Vance technical indicators you can presently evaluate if the expected return of 0.93% is justified by implied risk. Please utilize Eaton Vance Coefficient Of Variation of 2578.64, mean deviation of 1.71, and Downside Deviation of 1.99 to check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our take on today Eaton Vance climb

The treynor ratio is down to -0.23 as of today. Eaton Vance has relatively low volatility with skewness of 0.3 and kurtosis of 0.04. However, we advise all investors to independently investigate Eaton Vance to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on Eaton Vance

While some other entities within the asset management industry are still a little expensive, even after the recent corrections, Eaton Vance may offer a potential longer-term growth to sophisticated investors. In closing, as of the 8th of October 2020, our analysis shows that Eaton Vance almost neglects market trends. The venture is overvalued and projects below average probability of distress for the next 2 years. Our up-to-date 30 days advice on the venture 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 Ellen Johnson do not own shares of Eaton Vance. Please refer to our Terms of Use for any information regarding our disclosure principles.

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