By analyzing existing basic indicators between Flux Power and Bloom, 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 Bloom with a short position in Flux Power. 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. Flux Power has an asset utilization ratio of 3985.69 percent. This suggests that the company is making $39.86 for each dollar of assets. An increasing asset utilization means that Flux Power Holdings 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 entities, such as Flux or FREYR is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Flux Power's Liquidity
Flux Power
financial leverage refers to using borrowed capital as a funding source to finance Flux Power Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Flux Power 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 Flux Power'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 Flux Power'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 Flux Power's total debt and its cash.
Correlation Between Flux and FREYR Battery SA
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 Flux Power together with similar or unrelated positions with a negative correlation. For example, you can also add FREYR Battery to your portfolio. If FREYR Battery is not perfectly correlated to Flux Power 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 Flux Power, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Flux Power and FREYR Battery in your portfolio? Please note if you are using this as a pair-trade strategy between Flux Power and FREYR Battery, 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. Please check
pair correlation details between FLUX and FREY for more information.
Detailed Outlook On Flux Power
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
Now, let's check Flux Power revenue. Based on the latest financial disclosure, Flux Power Holdings reported 22.28
M of revenue. This is 99.36% lower than that of the Industrials sector and significantly higher than that of the
Electrical Equipment & Parts industry. The revenue for all United States stocks is 99.76% higher than that of Flux Power. As for Bloom Energy we see revenue of 794.25
M, which is much higher than that of the Electrical Equipment & Parts
| FLUX | 22.28 Million | 2.73 |
| Sector | 0.0 | 0.0 |
| BE | 794.25 Million | 97.27 |
Flux Power implied volatility may change after the rise
Downside deviation is down to 6.13. It may suggest a possible volatility slide. Flux Power Holdings is displaying above-average volatility over the selected time horizon. Investors should scrutinize Flux Power Holdings independently to ensure intended market timing strategies are aligned with expectations about Flux Power volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Flux Power'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 Flux Power'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 Take On Flux Power
While some other entities within the electrical equipment & parts industry are still a little expensive, even after the recent corrections, Flux Power may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither acquire nor exit any shares of Flux Power at this time. The Flux Power Holdings risk-reward trade off is not appealing enough to do any trading. 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 Flux Power.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile 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 Rifka Kats do not own shares of Flux Power Holdings. Please refer to our
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