HE Equipment Story

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HEES -- USA Stock  

USD 18.85  0.29  1.56%

It seems HE Equipment will continue to recover much faster as its share price surged up 2.62% today. This firm's current daily volatility is 4.92 percent, with a beta of 0.15 and an alpha of 0.24 over DOW. As many millenniums are trying to avoid business services, it makes sense to sum up HE Equipment Services a little further and try to understand its current market patterns. I will address the reasons why this entity does not get much respect from retail investors under the current market uncertainty.
Published over a month ago
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How risky is HE Equipment Services after the latest volatility spike?
HE Equipment Services currently holds roughly 12.44 M in cash with 314.61 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.35. Our trade recommendation tool can cross-verify current analyst consensus on HE Equipment Services and to analyze the company potential to grow this quarter and beyond.
Investing in HE Equipment, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding HE Equipment along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is HE Equipment's Liquidity

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

How HE Equipment utilizes its cash?

To perform a cash flow analysis of HE Equipment, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash HE Equipment is receiving and how much cash it distributes out in a given period. The HE Equipment cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. HE Equipment Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. HE Equipment reported last year Net Cash Flow from Operations of 319.22 Million

HE Equipment Correlation with Peers

Investors in HE Equipment can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in HE Equipment Services. Diversification will allow for the same portfolio return with reduced risk. The correlation table of HE Equipment and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities HE Equipment is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of HE Equipment for more details

A Deeper Analysis

HE Equipment appears to be somewhat reliable, given 1 month investment horizon. HE Equipment Services retains Efficiency (Sharpe Ratio) of 0.11, which attests that the entity had 0.11% of return per unit of price deviation over the last month. Our outlook to determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By inspecting HE Equipment Services technical indicators you can at this moment evaluate if the expected return of 0.54% is justified by implied risk. Please utilize HE Equipment Services Standard Deviation of 4.97, market risk adjusted performance of 1.77, and Semi Deviation of 4.47 to validate if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

HE Equipment implied volatility may change after the spike

The variance is down to 24.71 as of today. HE Equipment Services exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate HE Equipment Services individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about HE Equipment future systematic risk.

While some other firms under the rental & leasing services industry are still a bit expensive, HE Equipment may offer a potential longer-term growth to retail investors. The inconsistency in the assessment between current HE Equipment valuation and our trade advice on HE Equipment is due to the recent market swings and your selection of investing horizon. 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 HE Equipment.

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 Raphi Shpitalnik do not own shares of HE Equipment Services. Please refer to our Terms of Use for any information regarding our disclosure principles.

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