Harsco Story

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HSC -- USA Stock  

USD 13.91  0.13  0.94%

It looks like Barnes will be up for a correction faster as its share price went up 0.43% today to Harsco's 1.54%As many baby boomers are still indifferent towards industrials space, we will concentrate on both Harsco as well as Barnes Group. We are going to analyze some of the competitive aspects of both Harsco and Barnes.
Published over a month ago
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What should I sell first Harsco (NYSE:HSC) or Barnes?
By analyzing existing fundamental indicators between Harsco and Barnes, 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 Barnes with a short position in Harsco. 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. Harsco has an asset utilization ratio of 76.17 percent. This suggests that the company is making $0.76 for each dollar of assets. An increasing asset utilization means that Harsco is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Harsco or Barnes is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Harsco's Liquidity

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

Correlation Between Harsco and Barnes Group

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Harsco together with similar or unrelated positions with a negative correlation. For example, you can also add Barnes to your portfolio. If Barnes is not perfectly correlated to Harsco it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Harsco for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between HSC and B for more information.

Sale by Hathaway Derek C of 1100 shares of Harsco

Legal trades by Harsco insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Harsco insider trading alert for sale of common stock $1.25 par value by Hathaway Derek C, Chairman and CEO, on 12th of June 2020. This event was filed by Harsco Corp with SEC on 2007-12-05. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is Harsco valued fairly 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 take a look at Harsco revenue. Based on the latest financial disclosure, Harsco reported 1.57 B of revenue. This is 55.13% lower than that of the Industrials sector and significantly higher than that of the Specialty Industrial Machinery industry. The revenue for all United States stocks is 83.36% higher than that of Harsco. As for Barnes we see revenue of 1.31 B, which is much higher than that of the Specialty Industrial Machinery

Harsco1.57 Billion
Sector0.0
Barnes1.31 Billion
1.6 B
Harsco
Sector
1.3 B
Barnes

Analysis of Harsco

Jensen alpha is down to 0.93. It may suggest a possible volatility slip. As of the 5th of August, Harsco retains the Market Risk Adjusted Performance of 4.08, downside deviation of 5.77, and Risk Adjusted Performance of 0.2672. Harsco 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 Harsco, which can be compared to its competitors. Please check out Harsco variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to decide if Harsco is priced fairly, providing market reflects its last-minute price of 16.6 per share. Given that Harsco has jensen alpha of 0.9261, we strongly advise you to confirm Harsco's regular market performance to make sure the company can sustain itself at a future point.

The Bottom Line

Whereas many other companies in the specialty industrial machinery industry are either recovering or due for a correction, Harsco may not be as strong as the others in terms of longer-term growth potentials. To sum up, as of the 5th of August 2020, our up-to-date 30 days advice on the company is Cautious Hold. We believe Harsco is currently overvalued with below average chance of distress for the next two years.

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 Achuva Shats do not own shares of Harsco. Please refer to our Terms of Use for any information regarding our disclosure principles.

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