Francescas Story

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FRAN -- USA Stock  

USD 2.22  0.26  10.48%

Despite quite persistent fundamental indicators, Francescas Holdings is not utilizing all of its potentials. The current stock price mess, may contribute to a short-term swings for the institutional investors. We currently estimate Francescas Holdings as undervalued. The real value is approaching 7.64 per share.
Published over three months ago
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Does Francescas Holdings (NASDAQ:FRAN) have persistent fundamental indicators based on the latest rise?
We provide trade advice to complement the prevailing expert consensus on Francescas Holdings. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. Francescas Holdings dividends can provide a clue to the current value of the stock. The company is not expected to issue dividends this year as it is trying to preserve or re-invest any of the funds available for distribution to stakeholders.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Francescas Holdings income statement, its balance sheet, and the statement of cash flows. Potential Francescas Holdings investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Francescas Holdings investors may use each financial statement separately, they are all related. The changes in Francescas Holdings's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Francescas Holdings's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Francescas Holdings fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Francescas Holdings performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Francescas Holdings shares is the value that is considered the true value of the share. If the intrinsic value Francescas is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Francescas Holdings. Please read more on our fundamental analysis page.

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

Francescas Holdings Gross Profit

Francescas Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Francescas Holdings previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Francescas Holdings Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

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?

Institutional investor usually refers to an organization that invests money in Francescas Holdings on behalf of clients or other money managers. Buying and selling of large positions of Francescas Holdings stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Francescas Holdings stock. Let's take a look at how the ownership of Francescas is distributed among investors.

Ownership Allocation

The market capitalization of Francescas Holdings is currently $14.25 Million. Over half of Francescas Holdings outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to corporate investors that obtain positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulation than regular investors in Francescas Holdings. Please watch out for any change in the institutional holdings of Francescas Holdings as this could mean something significant has changed or about to change at the company. Be advised that no matter how volatile the entity is, if the real value of the firm is more than the value suggested by the market, you should consider buying it.

Retail Investors
Retail Investors33.52

Asset Utilization

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.

Current Assets
79.7 M
Assets Non Current
180.4 M
Current Assets79.71 Million29.59
Assets Non Current180.37 Million66.95
Tax Assets9.33 Million3.46

Francescas Holdings latest slide is confusing

Francescas Holdings latest standard deviation surges over 9.59. 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.

Our Conclusion on Francescas Holdings

Whereas some companies under the apparel retail industry are still a bit expensive, Francescas Holdings may offer a potential longer-term growth to institutional investors. To conclude, as of the 15th of September 2020, our analysis shows that Francescas Holdings almost mirrors the market. The company is undervalued and projects below average probability of bankruptcy for the next 2 years. Our present 30 days recommendation on the company 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 Francescas Holdings Corporation. Please refer to our Terms of Use for any information regarding our disclosure principles.

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