Is Hamilton Beach outlook still optimistic based on the current debt level?

The upcoming quarterly report is expected on the 29th of July 2020. The stock is undergoing an active upward rally. Hamilton Beach Revenue Per Employee is projected to decrease significantly based on the last few years of reporting. The past year's Revenue Per Employee was at 901,240. The current year Average Assets is expected to grow to about 350.6 M, whereas Net Income Per Employee is forecasted to decline to (5.3 K). Although many aggressive traders are getting into technology space, Hamilton Beach Brands may or may not be your first choice. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over a year ago
View all stories for Hamilton Beach | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Gabriel Shpitalnik

This firm has 58.58 M in debt with debt to equity (D/E) ratio of 1.06, which is OK given its current industry classification. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Hamilton Beach has an asset utilization ratio of 164.46 percent. This suggests that the company is making $1.64 for each dollar of assets. An increasing asset utilization means that Hamilton Beach Brands is more efficient with each dollar of assets it utilizes for everyday operations.
Hamilton Beach financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Hamilton Beach, including all of Hamilton Beach's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Hamilton Beach assets, the company is considered highly leveraged. Understanding the composition and structure of overall Hamilton Beach debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Hamilton Total Debt

Hamilton Beach Brands liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Hamilton Beach Brands has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Hamilton Beach balance sheet include debt obligations and money owed to different Hamilton Beach vendors, workers, and loan providers. Below is the chart of Hamilton main long-term debt accounts currently reported on its balance sheet.
You can use Hamilton Beach Brands financial leverage analysis tool to get a better grip on understanding its financial position

How important is Hamilton Beach's Liquidity

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

Breaking down Hamilton Beach Further

The latest price spikes of Hamilton Beach may raise some interest from investors. The stock closed today at a share price of 11.7 on 566,537 in trading volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 7.59. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Hamilton Beach Brands partners.

Asset Breakdown

Assets Non Current
285.1 M
Current Assets
Total Assets342.65 Million
Current Assets285.09 Million
Assets Non Current48.92 Million
Goodwill10.06 Million
Tax Assets3.95 Million

Our perspective of the current Hamilton Beach build-up

Current standard deviation is at 7.52. As of the 25th of July, Hamilton Beach retains the Downside Deviation of 4.89, market risk adjusted performance of 0.3976, and Risk Adjusted Performance of 0.152. Hamilton Beach 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 and interpolate nineteen technical drivers for Hamilton Beach Brands, which can be compared to its competitors. Please check out Hamilton Beach Brands maximum drawdown, semi variance, and the relationship between the jensen alpha and potential upside to decide if Hamilton Beach is priced fairly, providing market reflects its last-minute price of 14.58 per share. Given that Hamilton Beach Brands has jensen alpha of 0.3687, we strongly advise you to confirm Hamilton Beach Brands's regular market performance to make sure the company can sustain itself at a future point.

The Current Takeaway on Hamilton Beach Investment

Whereas some other companies under the consumer electronics industry are still a bit expensive, Hamilton Beach may offer a potential longer-term growth to investors. While some investors may not share our view we believe that the current risk-reward utility 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 Hamilton Beach.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

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 Hamilton Beach 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