Exfo Story

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EXFO -- USA Stock  

USD 3.80  0.15  3.80%

It looks like Dasan Zhone will be up for a correction way faster as its share price whent up 0.46% today to Exfo's 0.2283%. As many rational traders are trying to avoid technology space, it makes sense to outline Exfo Inc a little further and understand how it stands against Dasan Zhone and other similar entities. We are going to inspect some of the competitive aspects of both Exfo and Dasan.
Published over a week ago
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Is Exfo riskier than Dasan Zhone Solutions (NASDAQ:DZSI)?
By analyzing existing technical and fundamental indicators between Exfo and Dasan, 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 Dasan with a short position in Exfo. 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. Exfo has an asset utilization ratio of 110.83 percent. This suggests that the company is making $1.11 for each dollar of assets. An increasing asset utilization means that Exfo Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Exfo or Dasan is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Exfo's Liquidity

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

Correlation Between Exfo and Dasan Zhone Solutions

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Exfo together with similar or unrelated positions with a negative correlation. For example, you can also add Dasan Zhone to your portfolio. If Dasan Zhone is not perfectly correlated to Exfo it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Exfo for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between EXFO and DZSI for more information.

Note

Are you currently holding both Exfo and Dasan Zhone in your portfolio?
Please note if you are using this as a pair-trade strategy between Exfo and Dasan Zhone, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

What is driving Exfo Investor Appetite?

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

Lets now take a look at Exfo revenue. Based on the latest financial disclosure, Exfo Inc reported 263.54 M of revenue. This is 93.53% lower than that of the Technology sector and 94.62% lower than that of the Communication Equipment industry. The revenue for all United States stocks is 97.21% higher than that of Exfo. As for Dasan Zhone we see revenue of 300.64 M, which is 93.86% lower than that of the Communication Equipment

Sector
4.1 B
EXFO263.54 Million5.68
Sector4.08 Billion87.84
DZSI300.64 Million6.48

Momentum Analysis of Exfo suggests possible reversal in May

Semi deviation is down to 2.05. It may entail a possible volatility slide.
As of the 7th of April, Exfo shows the Coefficient Of Variation of 600.68, mean deviation of 2.11, and Downside Deviation of 2.78. Exfo Inc 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 Exfo Inc, which can be compared to its rivals. Please confirm Exfo Inc variance, as well as the relationship between the value at risk and skewness to decide if Exfo Inc is priced favorably, providing market reflects its regular price of 4.39 per share. Given that Exfo has jensen alpha of 0.4848, we urge you to verify Exfo Inc's prevailing market performance to make sure the company can sustain itself at a future point.

Whereas some companies under the communication equipment industry are still a bit expensive, Exfo may offer a potential longer-term growth to institutional investors. To conclude, as of the 7th of April 2021, we see that Exfo moves indifferently to market moves. The company is overvalued with low odds of financial turmoil within the next 24 months. Our actual 30 days buy-or-sell advice on the company is Cautious Hold.

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 Exfo Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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