Iconix Story

ICON -- USA Stock

USD 2.17 0.07 3.12%

Macroaxis Story

Despite quite inconsistent forward indicators, Iconix Brand disclosed solid returns over the last few months and may actually be approaching a breakup point. Iconix Brand Group chance of bankruptcy is under 38 percent. Will Iconix Brand institutional investors continue to buy in March?

Published over a month ago

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Does Iconix Brand (NASDAQ:ICON) have persistent forward indicators based on the latest rise?

Iconix Brand is dangerous given 1 month investment horizon. Iconix Brand Group holds Efficiency (Sharpe) Ratio of 0.27, which attests that the entity had 0.27% of return per unit of risk over the last month. Our standpoint towards determining the volatility of a stock is to use Iconix Brand Group market data together with company specific technical indicators. We were able to collect and analyze data for twenty-seven different technical indicators, which can help you to evaluate if expected returns of 2.88% are justified by taking the suggested risk. Use Iconix Brand Group Market Risk Adjusted Performance of (1.23), downside deviation of 3.87, and Risk Adjusted Performance of 0.2068 to evaluate company specific risk that cannot be diversified away.

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Iconix Brand income statement, its balance sheet, and the statement of cash flows. Potential Iconix Brand investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Iconix Brand investors may use each financial statement separately, they are all related. The changes in Iconix Brand's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Iconix Brand's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

The goal of Iconix Brand fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Iconix Brand performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Iconix Brand shares is the value that is considered the true value of the share. If the intrinsic value Iconix is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Iconix Brand.

Please read more on our fundamental analysis page.

How important is Iconix Brand's Liquidity

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

How Iconix utilizes its cash?

To perform a cash flow analysis of Iconix Brand, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Iconix Brand is receiving and how much cash it distributes out in a given period. The Iconix Brand cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Iconix Brand Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 28 Million

Iconix Brand Gross Profit

Iconix Brand Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Iconix Brand previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Iconix Brand Gross Profit growth over the last 10 years.

Please check Gross Profit in more details.

Payment of 18 shares by Jason Schaefer of Iconix Brand subject to Rule 16b-3

Legal trades by Iconix Brand 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:

Iconix insider trading alert for payment of common stock by Jason Schaefer, EVP and General Counsel, on 31st of October 2020. This event was filed by Iconix Brand Group Inc with SEC on 2016-05-02. Statement of changes in beneficial ownership - SEC Form 4. Jason Schaefer currently serves as executive vp, general counsel and secretary of Iconix Brand Group [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.

Breaking down the case for Iconix Brand

The entity reported the previous year's revenue of 117.87 M. Net Loss for the year was (88.38 M) with profit before overhead, payroll, taxes, and interest of 148.98 M.

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Iconix Brand has an asset utilization ratio of 4.71 percent. This suggests that the company is making $0.0471 for each dollar of assets. An increasing asset utilization means that Iconix Brand Group is more efficient with each dollar of assets it utilizes for everyday operations.

Assets Non Current

344 M

Goodwill

277.3 M

Current Assets	123.47 Million	16.47
Assets Non Current	343.97 Million	45.88
Goodwill	277.27 Million	36.99
Tax Assets	4.97 Million	0.66

Are Iconix Brand technical ratios showing a recoup?

The coefficient of variation is down to 445.39 as of today. Iconix Brand Group is displaying above-average volatility over the selected time horizon. Investors should scrutinize Iconix Brand Group independently to ensure intended market timing strategies are aligned with expectations about Iconix Brand volatility.

Our Final Take On Iconix Brand

Whereas some other companies within the apparel manufacturing industry are still a little expensive, even after the recent corrections, Iconix Brand may offer a potential longer-term growth to institutional investors. To conclude, as of the 30th of January 2021, our actual 30 days buy-or-sell advice on the company is Strong Sell. However, we believe Iconix Brand is undervalued with below average odds of distress for the next two years.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

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 Ellen Johnson do not own shares of Iconix Brand Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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