Will HC2 Holdings (NYSE:HCHC) debt increase in January

The next fiscal quarter end is expected on the 31st of December 2020. The stock is undergoing an active upward rally. HC2 Holdings Revenue Per Employee is projected to increase significantly based on the last few years of reporting. The past year's Revenue Per Employee was at 31 Million. The current year Average Assets is expected to grow to about 7.4 B, whereas Net Income Per Employee is forecasted to decline to (505.1 K). As many investors are getting excited about communication services space, it is fair to go over HC2 Holdings as an investment option. I will address a few possible reasons investors do not currently respect this stock.
Published over a year ago
View all stories for HC2 Holdings | 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 Michael Smolkin

HC2 Holdings currently holds 646.4 M in liabilities with Debt to Equity (D/E) ratio of 1.48, which is about average as compared to similar companies. The entity has a current ratio of 4.66, suggesting that it is liquid enough and is able to pay its financial obligations when due.

How important is HC2 Holdings's Liquidity

HC2 Holdings financial leverage refers to using borrowed capital as a funding source to finance HC2 Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. HC2 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. Financial leverage can amplify the potential profits to HC2 Holdings' 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 HC2 Holdings' 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 HC2 Holdings's total debt and its cash.

What is the case for HC2 Holdings Investors

The current price rise of HC2 Holdings may raise some interest from investors. The stock closed today at a share price of 3.68 on 1,872,400 in trading volume. The company directors and management may have good odds in positioning the entity resources to exploit market volatility in January. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.48. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the HC2 Holdings partners.

Liabilities Breakdown

Total Liabilities7.01 Billion
Current Liabilities189.7 Million
Long-Term Liabilities266.95 Million
Tax Liabilities472,926

Will HC2 Holdings growth be trustworthy after the rise?

Treynor ratio is down to 0.57. It may suggest a possible volatility slip. HC2 Holdings shows above-average downside volatility for the selected time horizon. We advise investors to inspect HC2 Holdings further and ensure that all market timing and asset allocation strategies are consistent with the estimation of HC2 Holdings future alpha.

Our Final Takeaway

Whereas some other firms under the telecom services industry are still a bit expensive, HC2 Holdings may offer a potential longer-term growth to investors. While some investors may not share our view, we believe it may be a good time to increase your existing holdings in HC2 Holdings as the risk-reward trade off is appealing enough to hold a position. 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 HC2 Holdings.

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 HC2 Holdings. 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