Should I invest in EZCORP in short term?
 | By Ellen Johnson | Macroaxis Story |
In this article I will focus on EZCORP. I will address the reasons why this entity was insulated from the current market uncertainty. EZCORP slowly supersedes market. The returns on the market and returns on EZCORP appear slimly correlated for the last few months. The direct evidence of stable primary indicators of the venture causes near short-term price swing for directors of the venture. What is EZCORP Target Price Odds to finish over Current Price? Depending on normal probability distribution, the odds of EZCORP to move above current price in 30 days from now is about 11.05%. The EZCORP probability density function shows the probability of EZCORP Stock to fall within a particular range of prices over 30 days . Given the investment horizon of 30 days, EZCORP has beta of 0.2623 suggesting as returns on market go up, EZCORP average returns are expected to increase less than the benchmark. However during bear market, the loss on holding EZCORP will be expected to be much smaller as well. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. EZCORP is significantly underperforming S&P 500.
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Reviewed by Raphi Shpitalnik
The company average rating is Sell from 4 analysts. As of 28 of January EZCORP owns Market Risk Adjusted Performance of (0.1) and Coefficient Of Variation of (14,302). EZCORP technical analysis allows you to utilize past data patterns in order to determine a pattern that computes the direction of the firm future prices. Strictly speaking you can use this information to find out if the firm will indeed mirror its model of historical prices and volume patterns or the prices will eventually revert. We found nineteen technical drivers for EZCORP which can be compared to its peers in the sector. Please confirm EZCORP Market Risk Adjusted Performance, Variance as well as the relationship between Variance and Potential Upside to decide if EZCORP is priced adequately providing market reflects its prevailing price of 9.39 per share. Given that EZCORP has Jensen Alpha of (0.029775), we urge you verify EZCORP latest market performance to make sure the company can sustain itself at some point future time.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as EZCORP. Your research has to be compared to or analyzed against EZCORP's peers to derive any actionable benefits. When done correctly, EZCORP's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in EZCORP Inc.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of EZCORP Inc. In general, sophisticated investors focus on analyzing EZCORP stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build EZCORP's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of EZCORP's intrinsic value. In addition to deriving basic predictive indicators for EZCORP, many experienced traders also check how macroeconomic factors affect EZCORP price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of EZCORP's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is EZCORP's Liquidity
EZCORP financial leverage refers to using borrowed capital as a funding source to finance EZCORP Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. EZCORP 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. Financial leverage can amplify the potential profits to EZCORP's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of EZCORP's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between EZCORP's total debt and its cash.
Going after EZCORP Financials
The small decline in market price for the last few months could raise concerns from investors as the firm closed today at a share price of 9.2101 on 470033.000 in volume. The company executives did not add much value to EZCORP investors in December. However, diversifying your holdings with EZCORP or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.5379. The current volatility is consistent with the ongoing market swings in December 2018 as well as with EZCORP unsystematic, company specific events. EZCORP reports 5.54% return on equity. EZCORP is selling at 9.39. That is 2.07 percent up. Today lowest is 9.2101. EZCORP Current Ratio is increasing over the last 5 years. The previous year value of EZCORP Current Ratio was 2.91. Moreover, EZCORP Assets Non Current is increasing over the last 5 years. To summarize, we believe that at this point EZCORP is undervalued with below average chance of bankruptcy within the next 2 years. Our present buy-sell advice on the venture is Cautious Hold.
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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 EZCORP Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.