Is At Home (NYSE:HOME) ripping up shareholders?

As many of us are excited about consumer cyclical space, it is fair to digest At Home Group. We will cover the possibilities of making At Home into a steady grower in October. Here I will also expose some primary fundamental factors affecting At Home's services, and outline how it will impact the outlook for investors this year.
Published over a year ago
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Reviewed by Rifka Kats

The company reported the previous year's revenue of 1.25 B. Net Loss for the year was (587.26 M) with profit before overhead, payroll, taxes, and interest of 387.95 M. About 109.0% of the company shares are owned by institutional investors. The book value of At Home was currently reported as 3.92. At Home Group recorded a loss per share of 9.16. The entity last dividend was issued on the February 28, 2014. The firm had 1:1 split on the December 20, 2007.

How important is At Home's Liquidity

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

Breaking it down

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. At Home has an asset utilization ratio of 118.5 percent. This indicates that the company is making $1.19 for each dollar of assets. An increasing asset utilization means that At Home Group is more efficient with each dollar of assets it utilizes for everyday operations.

Is At Home showing appearance of lower volatility?

Skewness is down to 1.36. It may indicate a possible volatility dip. At Home Group is displaying above-average volatility over the selected time horizon. Investors should scrutinize At Home Group independently to ensure intended market timing strategies are aligned with expectations about At Home volatility.

Our Final Perspective on At Home

Although some other firms under the specialty retail industry are still a bit expensive, At Home may offer a potential longer-term growth to shareholders. The bottom line, as of the 1st of September 2020, we believe that at this point, At Home is slightly risky with low probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our final 30 days buy-hold-sell advice on the firm is Strong Hold.

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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 Vlad Skutelnik do not own shares of At Home Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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