Francescas Story

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FRAN -- USA Stock  

USD 2.69  0.25  8.50%

As many millenniums are excited about consumer cyclical space, we are going to shadow both, Francescas Holdings and Duluth Holdings as a potential short-term opportunity. We are going to inspect some of the competitive aspects of both Francescas and Duluth.
Published over a week ago
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Should I drop all of Duluth and Francescas?
By analyzing existing fundamental indicators between Francescas Holdings and Duluth, 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 Duluth with a short position in Francescas Holdings. 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. Francescas Holdings has an asset utilization ratio of 188.12 percent. This suggests that the company is making $1.88 for each dollar of assets. An increasing asset utilization means that Francescas Holdings Corporation 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 Francescas or Duluth is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Francescas Holdings's Liquidity

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

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 Francescas Holdings, but it might be worth checking our own buy vs. sell analysis

Correlation Between Francescas and Duluth Holdings

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 Francescas Holdings together with similar or unrelated positions with a negative correlation. For example, you can also add Duluth Holdings to your portfolio. If Duluth Holdings is not perfectly correlated to Francescas Holdings 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 Francescas Holdings 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 FRAN and DLTH for more information.

Acquisition by Clarke Andrew J of 18781 shares of Francescas Holdings subject to Rule 16b-3

Legal trades by Francescas Holdings insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Francescas insider trading alert for grant of restricted stock units by Clarke Andrew J, President and CEO, on 27th of August 2020. This event was filed by Francescas Holdings Corp with SEC on 2020-08-27. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is Francescas Holdings valued adequately by the market?

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 Francescas Holdings revenue. Based on the latest financial disclosure, Francescas Holdings Corporation reported 364.16 M of revenue. This is 94.89% lower than that of the Consumer Cyclical sector and significantly higher than that of the Apparel Retail industry. The revenue for all United States stocks is 96.14% higher than that of Francescas Holdings. As for Duluth Holdings we see revenue of 626.71 M, which is much higher than that of the Apparel Retail

Francescas364.16 Million
Sector0.0
Duluth626.71 Million
364.2 M
Francescas
Sector
626.7 M
Duluth

Our perspective of the latest Francescas Holdings slide

The skewness is down to 2.31 as of today. Francescas Holdings Corporation is displaying above-average volatility over the selected time horizon. Investors should scrutinize Francescas Holdings Corporation independently to ensure intended market timing strategies are aligned with expectations about Francescas Holdings volatility.

Whereas some other companies in the apparel retail industry are either recovering or due for a correction, Francescas Holdings may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 14th of September 2020, we see that Francescas Holdings follows the market closely. The company is undervalued with below average odds of financial turmoil within the next 24 months. However, our present 30 days buy-or-sell advice on the company is Sell.

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 Ellen Johnson do not own shares of Francescas Holdings Corporation. Please refer to our Terms of Use for any information regarding our disclosure principles.

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