Enviva Stock Story

EVA -  USA Stock  

USD 69.75  0.52  0.74%

As many rational traders are trying to avoid basic materials space, it makes sense to go over Enviva Partners LP a little further and understand how it stands against Boise Cascade and other similar entities. We are going to analyze some of the competitive aspects of both Enviva and Boise.
Published over a month ago
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Will Boise Cascade (NYSE:BCC) and Enviva Partners (NYSE:EVA) deliver in November?
By analyzing existing basic indicators between Enviva Partners and Boise, 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 Boise with a short position in Enviva Partners. 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. Enviva Partners has an asset utilization ratio of 160.23 percent. This suggests that the company is making $1.6 for each dollar of assets. An increasing asset utilization means that Enviva Partners LP is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Enviva Partners's Liquidity

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

How Enviva utilizes its cash?

To perform a cash flow analysis of Enviva Partners, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Enviva Partners is receiving and how much cash it distributes out in a given period. The Enviva Partners cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Enviva Partners Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 119.33 Million

Purchase by Joseph Lane of 159 shares of Enviva Partners

Legal trades by Enviva Partners insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Enviva insider trading alert for perchase of common units by Joseph Lane, Exec VP Human Capital, on 29th of November 2021. This event was filed by Enviva Partners Lp with SEC on 2021-11-29. Statement of changes in beneficial ownership - SEC Form 4. Joseph Lane currently serves as executive vice president - human capital of Enviva Partners LP [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another angle On Enviva Partners

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

Let me take a closer look at Enviva Partners revenue. Based on the latest financial disclosure, Enviva Partners LP reported 911.65 M of revenue. This is 88.4% lower than that of the Basic Materials sector and 72.95% lower than that of the Lumber & Wood Production industry. The revenue for all United States stocks is 90.34% higher than that of Enviva Partners. As for Boise Cascade we see revenue of 7.33 B, which is 117.46% higher than that of the Lumber & Wood Production

Sector
3.4 B
BCC
7.3 B
EVA911.65 Million7.85
Sector3.37 Billion29.03
BCC7.33 Billion63.12

Will Enviva Partners growth be justifiable after the rise?

Current maximum drawdown is at 5.72. Enviva Partners LP has relatively low volatility with skewness of 4.05 and kurtosis of 25.28. However, we advise all investors to independently investigate Enviva Partners LP to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Enviva Partners' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Enviva Partners' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Enviva Partners

Whereas some companies under the lumber & wood production industry are still a bit expensive, Enviva Partners may offer a potential longer-term growth to investors. With an optimistic outlook on your 90 days horizon, it may be a good time to buy new shares of Enviva or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. 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 Enviva Partners.

Editorial Staff

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 Enviva Partners LP. Please refer to our Terms of Use for any information regarding our disclosure principles.

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