Fat Brands Story

<div class='circular--portrait' style='background:#FF01C9;color: #FFF8DC;font-size:4em;'>FB</div>
FAT -- USA Stock  

USD 8.54  0.36  4.40%

It appears FAT Brands will continue to recover much faster as its share price surged up 32.67% today. The company current daily volatility is 7.02 percent, with a beta of 1.24 and an alpha of 0.96 over DOW. As many millenniums are trying to avoid overall trading value increase, it makes sense to review FAT Brands a little further and try to understand its current market patterns. We will analyze why FAT Brands investors may still consider a stake in the business.
Published over a week ago
View all stories for Fat Brands | View All Stories
Will FAT Brands (NASDAQ:FAT) volatility gain before March
FAT Brands has roughly 12.11 M in cash with (5.65 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.82. FAT Brands holds a performance score of 12 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of 1.2383, which means a somewhat significant risk relative to the market. Let's try to break down what FAT Brands's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, FAT Brands will likely underperform. Although it is vital to follow FAT Brands historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. Our way of predicting future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if FAT Brands expected return of 1.19 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use FAT Brands value at risk, as well as the relationship between the skewness and day median price to analyze future returns on FAT Brands.
Investing in Fat Brands, 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 Fat Brands 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.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Fat Brands' stock 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. Please use the tools below to analyze the current value of Fat Brands in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Fat Brands. Your research has to be compared to or analyzed against Fat Brands' peers to derive any actionable benefits. When done correctly, Fat Brands' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Fat Brands.

How important is Fat Brands's Liquidity

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

How Fat Brands utilizes its cash?

To perform a cash flow analysis of Fat Brands, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Fat Brands is receiving and how much cash it distributes out in a given period. The Fat Brands cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Fat Brands Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Fat Brands reported Net Cash Flow from Operations of 1.72 Million in 2020

Fat Brands Correlation with Peers

Investors in Fat Brands can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Fat Brands. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Fat Brands and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Fat Brands 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 Fat Brands for more details

Breaking down Fat Brands Further

FAT Brands is moderately volatile given 1 month investment horizon. FAT Brands secures Sharpe Ratio (or Efficiency) of 0.17, which denotes the company had 0.17% of return per unit of volatility over the last month. Our viewpoint regarding predicting the risk of a stock is to use both market data as well as company specific technical data. We have analyzed twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.19% are justified by taking the suggested risk. Use FAT Brands Mean Deviation of 3.87, downside deviation of 4.65, and Market Risk Adjusted Performance of 0.8795 to evaluate company specific risk that cannot be diversified away.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our take on today FAT Brands gain

FAT Brands newest semi deviation boosts over 3.8. FAT Brands is displaying above-average volatility over the selected time horizon. Investors should scrutinize FAT Brands independently to ensure intended market timing strategies are aligned with expectations about FAT Brands volatility.

Our Final Take On FAT Brands

Whereas some companies within the restaurants industry are still a little expensive, even after the recent corrections, FAT Brands may offer a potential longer-term growth to private investors. While some private investors may not share our view, we believe it may be a good time to increase your existing holdings in FAT Brands. 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 FAT Brands.

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 Raphi Shpitalnik do not own shares of Fat Brands. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com