Our viewpoint on Great Lakes (NASDAQ:GLDD) and Walmart (NYSE:WMT)?

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As many rational traders are trying to avoid industrials space, it makes sense to digest Great Lakes Drg a little further and understand how it stands against Walmart and other similar entities. We are going to discuss some of the competitive aspects of both Great and Walmart.

Published over two months ago

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By analyzing existing fundamental indicators between Great Lakes and Walmart, 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 Walmart with a short position in Great Lakes. 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. Great Lakes has an asset utilization ratio of 82.71 percent. This indicates that the company is making $0.83 for each dollar of assets. An increasing asset utilization means that Great Lakes Drg is more efficient with each dollar of assets it utilizes for everyday operations.

Our viewpoint on Great Lakes (NASDAQ:GLDD) and Walmart (NYSE:WMT)?

How important is Great Lakes's Liquidity

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

How does Great utilize its cash?

To perform a cash flow analysis of Great Lakes, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Great Lakes is receiving and how much cash it distributes out in a given period. The Great Lakes cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Great Lakes Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 44.11 Million

Is Great Lakes valued correctly 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

Lets now check Great Lakes revenue. Based on the latest financial disclosure, Great Lakes Drg reported 742.87 M of revenue. This is 78.77% lower than that of the Industrials sector and 86.77% lower than that of the Engineering & Construction industry. The revenue for all United States stocks is 92.13% higher than that of Great Lakes. As for Walmart we see revenue of 576.01 B, which is much higher than that of the Engineering & Construction

WMT

576 B

GLDD	742.87 Million	0.13
Sector	3.5 Billion	0.6
WMT	576.01 Billion	99.27

Another 3 percent surge for Great Lakes

Potential upside is down to 2.76. It may indicate a possible volatility dip.

As of the 1st of November, Great Lakes retains the risk adjusted performance of (0.28), and Market Risk Adjusted Performance of (0.59). Great Lakes technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to break down nineteen technical drivers for Great Lakes Drg, which can be compared to its competitors. Please check out Great Lakes Drg coefficient of variation, maximum drawdown, skewness, as well as the relationship between the information ratio and downside variance to decide if Great Lakes is priced fairly, providing market reflects its last-minute price of 7.8 per share. Given that Great Lakes Drg has jensen alpha of (0.74), we strongly advise you to confirm Great Lakes Drg's regular market performance to make sure the company can sustain itself at a future point.

Our Final Perspective on Great Lakes

Although other companies under the engineering & construction industry are still a bit expensive, Great Lakes may offer a potential longer-term growth to shareholders. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Great as the current risk-reward utility is not appealing enough. 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 Great Lakes.

Editorial Staff

Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments. 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 Aina Ster do not own shares of Great Lakes Dredge. Please refer to our Terms of Use for any information regarding our disclosure principles.

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