National Story

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EYE -- USA Stock  

USD 48.04  0.46  0.97%

As many investors are getting excited about consumer cyclical space, it is fair to digest National Vision Holdings. We will evaluate if National Vision shares are reasonably priced going into April. Is National Vision Holdings operations in 2021 sustainable? Here we are going to cover the entity perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a month ago
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The impact of latest bullish trends on National Vision (NASDAQ:EYE)
This firm has 1.04 B in debt with debt to equity (D/E) ratio of 1.21, which is OK given its current industry classification. The company has a current ratio of 1.53, which is typical for the industry and considered as normal.
Our advice tool can be used to complement National Vision Holdings investment recommendation provided by experts. It analyzes the firm's potential to grow against your specific risk preferences and investment horizon.
We determine the current worth of National Vision Holdings using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of National Vision Holdings based exclusively on its fundamental and basic technical indicators. By analyzing National Vision's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of National Vision's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of National Vision. We calculate exposure to National Vision's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to National Vision's related companies.

National Vision Holdings Investment Alerts

National investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring National Vision Holdings performance across your portfolios.Please check all investment alerts for National

National Vision Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare National value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across National Vision competition to find correlations between indicators driving the intrinsic value of National.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for National Vision, but it might be worth checking our own buy vs. sell analysis

Details

The latest bullish price patterns experienced by current National Vision Holdings shareholders could raise concerns from shareholders as the firm it trading at a share price of 47.80 on 653,600 in volume. The company directors and management have been very successful in rebalancing the firm assets at opportune times to take advantage of market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.47. The current volatility is consistent with the ongoing market swings in February 2021 as well as with National Vision Holdings unsystematic, company-specific events.
 2016 2017 2020 2021 (projected)
Cost of Revenue544.78 M806.52 M626.5 M699.44 M
Consolidated Income13.34 M32.8 M15.34 M21.57 M

Margins Breakdown

National profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or National Vision itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of National Vision profit margins.
EBITDA Margin0.0828
Gross Margin0.48
Profit Margin0.0158


National Vision Earnings before Tax is rather stable at the moment. Also, National Vision Invested Capital is increasing over the last 5 years.

National Vision implied volatility may change after the dip

Downside variance is down to 4.61. It may indicate a possible volatility dip. National Vision Holdings currently demonstrates below-average downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.03. However, we advise investors to further question National Vision Holdings expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure National Vision's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact National Vision's 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 Final Takeaway

Although other entities under the specialty retail industry are still a bit expensive, National Vision may offer a potential longer-term growth to shareholders. The bottom line, as of the 3rd of March 2021, we believe National Vision is currently overvalued. It almost mirrors the market and projects below average probability of bankruptcy in the next two years. Our primary 30 days 'Buy-vs-Sell' recommendation on the firm is 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 Vlad Skutelnik do not own shares of National Vision Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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